Business

State petitioned over Nairobi Expressway financing agreement

Wednesday, April 27th, 2022 10:12 | By
An aerial view of Nairobi Expressway. PHOTO/Courtesy

Consumers Federation of Kenya (Cofek) yesterday asked Ministry of Transport to come clean on the toll charges formula and financing agreement of the Sh89 billion Nairobi Expressway which is currently under guided trials.

The consumer watchdog is seeking to know to whether or not the said Nairobi Expressway was developed on the basis of loan, grant, public-private partnership, lease, Government financing or whatever arrangement. 

It is further seeking explanation on whether the road design was meant to reduce the pre-existing three-lane Mombasa Road into two and plans for the restoration of the ground and aerial drainage, which are likely to clog up traffic if not rectified.

Other issues the lobby whose secretary general is Stephen Mutoro wants made public are procurement processes for the maintenance of the expressway, whether the road exits and entrances were factored in the project costing and if the original Mombasa Road will be restored.

It also wants to know whether there is a hidden move by the government to push motorists to the toll road by reducing lanes of the Mombasa Road, according to the statement signed by Mutoro.

The expressway, the first-ever road under public-private partnership (PPP) model, is yet to be officially commissioned.

Weakening shilling

Last week, the government reviewed upwards the toll rates for motorists using the expressway by Sh50 to Sh360 from the previous Sh310 for the full Mlolongo-Westland stretch, citing weakening shilling against the dollar.

“The Base Toll Rates may be adjusted as per the Consumer Price Index and Exchange Rate on and after the commercial operation date. The Exchange rate of USD to KSh on the 31st December 2021 rose to Sh113.14,” the Ministry of Transport said in a gazette notice dated April 22, adding that the Gazette notice No. 11326 of 2020 is revoked.

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