NAIROBI, Kenya — The Kenya National Highways Authority (KeNHA) has revoked a Privately Initiated Proposal (PIP) for the construction of the Nairobi-Mombasa (Usahihi) expressway. The mega project, planned as a 459-km corridor from Mlolongo to Bonje, was to be implemented under a Public-Private Partnership (PPP) model.
Following an evaluation by the Public-Private Partnership Committee of the National Treasury & Economic Planning, the proposal was found to have failed to meet the relevant criteria and was therefore abandoned.
The committee has since directed the private party to consider restructuring the project by expanding the existing A8 highway instead.
In a formal statement, KeNHA provided the path forward for the project, stating, “The proposal may then be resubmitted to the Committee for a fresh determination in line with Section 43(12) of the PPP Act, 2021.”
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The project was initially expected to be completed within five years. According to previous reports, it was awarded to Korean firm Korean Overseas Infrastructure and Development Corporation (KIND) after a disagreement over the financing model led US firm Bechtel Engineering to turn down the government’s offer.
The project’s funding was based on a toll fee business model, where the contractor would finance the construction and recoup costs over time through user fees.