Kenya has opted to terminate a €1.3 billion contract with a French-led consortium, which was set to upgrade a 140-kilometre stretch of road connecting Nairobi to Nakuru into a multilane highway.
The agreement, signed in 2020 during a visit by then-President Uhuru Kenyatta to Paris, involved Vinci Highways along with Vinci Concessions and Meridiam, a French private equity firm. The Kenya National Highways Authority (KeNHA) revealed that the government initiated a review of the deal due to concerns over financial risk.
Public-private partnership
Specifically, the contract placed the burden of potential low traffic volumes on the government, making it financially risky. Attempts to renegotiate the agreement fell through after the new terms were considered unattractive by potential financiers, resulting in a deadlock.
Since no construction had begun, KeNHA issued a formal notice terminating the public-private partnership. Vinci and Meridiam have not provided public responses regarding the decision. According to sources familiar with the matter, the project is now expected to be awarded to a Chinese contractor, though the specific company has not been named.
Kenya’s recent diplomatic engagements with China, including visits by top officials and an upcoming trip by President William Ruto, suggest strengthening ties that may lead to a new infrastructure partnership.