Development
Rironi–Mau Summit Road Project Split Amid Chinese Investment Cap
CRBC–NSSF will take the Nairobi–Naivasha–Gilgil segment and the Nairobi–Maai Mahiu–Naivasha (A8 South) road covering about 139km, while SDRBI will undertake the 94km Gilgil–Mau Summit section.
NAIROBI, Kenya, Oct 25 – The expansion of the Rironi–Mau Summit Expressway will be split into two sections to accommodate two consortiums including Chinese firms and the National Social Security Fund (NSSF) after both bidders cited a strict $1 billion investment cap on Chinese state-owned enterprises that requires a lengthy internal review before approval.
KeNHA says the restructuring follows failed negotiations on the original full-corridor option for the 233km Nairobi–Nakuru–Mau Summit and Nairobi–Maai Mahiu–Naivasha PPP project, after both China Road and Bridge Corporation (CRBC)–NSSF and Shandong Hi-Speed Road and Bridge International (SDRBI) said they could not proceed with the entire scope under current Chinese SOE outbound-investment rules.
Under the new structure approved by the PPP Committee on November 10, CRBC–NSSF will take the Nairobi–Naivasha–Gilgil segment and the Nairobi–Maai Mahiu–Naivasha (A8 South) road covering about 139km, while SDRBI will undertake the 94km Gilgil–Mau Summit section.
The two-part model is based on alternative split-corridor feasibility proposals submitted by the firms earlier this year after signalling delays for investments exceeding $1 billion, which require about a year of internal scrutiny within China.
KeNHA confirmed that the full-corridor negotiations collapsed after CRBC told authorities that adjustments to accommodate the investment cap would amount to “material changes” barred under Section 57(3) of the PPP Act.
SDRBI also declined to take up the full scope, triggering evaluation of the split-corridor option now adopted by the PPP Committee.
“In accordance with the Public Disclosure Circular dated 24th April 2025, and to promote competition and openness in Privately Initiated Proposals, the public is hereby notified that any other qualified Private Party with the technical and financial capacity may, within the statutory timelines, submit a competing Privately Initiated Proposal (PIP) for the Project, in line with the provisions of the PPP Act, 2021 and associated Regulations.”
“Pursuant to the above approvals, KeNHA shall commence negotiations with the two Proponents for the respective sections of the Project road in accordance with Section 57 of the PPP Act, Cap 430 culminating in the signing of the Project Agreements, and subsequently the commencement of the Project.”
Motorists are expected to pay Sh8 per kilometre once the dual-carriageway upgrade is complete a tariff KeNHA says is more affordable than the Sh10 proposed by SDRBI in its previous full-corridor plan.
The 175km Nairobi–Nakuru–Mau Summit stretch is projected to cost about Sh90 billion and is scheduled for completion by June 2027, less than half the Sh190 billion quoted by a French consortium before the government cancelled the deal over cost concerns.
Treasury Cabinet Secretary John Mbadi earlier said the road will significantly improve mobility between Nairobi and western Kenya, cutting travel times on one of the country’s busiest trade corridors.
Kenya Insights allows guest blogging, if you want to be published on Kenya’s most authoritative and accurate blog, have an expose, news TIPS, story angles, human interest stories, drop us an email on [email protected] or via Telegram
-
Business2 weeks ago‘They Will Eat You Alive’: Retired Teacher Warns Against Bashy African Credit as Sh500,000 Loan Spirals Into Sh1.5 Million Fight
-
Business2 days agoTHE HANDSHAKE THAT BECAME A NOOSE: How Tuju’s Alleged Intimate Access to EADB’s Yeda Apopo Produced a Sh294 Million Deal With No Written Contract, and Why That Trust Destroyed an Empire
-
Investigations1 week agoTHE RUTO HAND IN TUJU’S FALL: How a President-Linked Petroleum Baron Walked Away With Sh3.5 Billion Karen Land for Sh450 Million
-
Business6 days agoBig Shame: EY and PwC Found Guilty of Fraud and Corruption in Kenya as World Bank Bans Lay Bare Scandal Inside the Global Audit Elite
-
Investigations2 weeks agoInvestigations Reveal The Depth Of Rot In City Hall’s Garbage Collection Tender To Corrupt Ghanaian Firm
-
Investigations2 weeks agoRevealed: How Kibaki and His Men Stole Raila’s Victory in the 2007 Election
-
Business2 weeks agoCyber Attack: Inside the USD4 Million Equity Bank Heist in Rwanda
-
Business2 weeks agoRegulator Finds GT Bank Kenya Guilty of Unfair Loan Terms After Throwing Longtime Customer Under the Bus
