Ruto Breaks Silence on KSh7.3 Billion Compensation to French Firm Over Cancelled Highway Contract

President William Ruto has defended the Kenyan government’s decision to compensate a French consortium following the cancellation of its contract to construct the Rironi-Mau Summit highway, explaining the financial reasons behind the controversial payment.

The government reportedly paid approximately KSh7.3 billion to settle obligations arising from the termination of the agreement awarded during former President Uhuru Kenyatta’s administration.

The consortium involved Vinci Highways SAS, Meridian Infrastructure Africa Fund and Vinci Concessions SAS, which had been contracted to undertake the highway project through a Public-Private Partnership (PPP) arrangement.

Under the original agreement, the French companies were expected to finance the construction and recover their investment through toll charges imposed on motorists using the highway.

However, the Ruto administration raised concerns over the financial structure, arguing that the arrangement could expose the country to substantial financial obligations and put additional pressure on taxpayers.

Treasury officials reportedly questioned the affordability of the deal, particularly the service payments Kenya would have been required to make during the initial years of implementation.

The government subsequently cancelled the agreement and transferred the project to Chinese contractors, with changes made to the construction programme.

The compensation was intended to settle the outstanding obligations and avoid a potentially costly international legal dispute with the French consortium.

Despite the government’s explanation, the payment has continued to attract public scrutiny. The Auditor-General also raised questions about the withdrawal of approximately KSh7.31 billion from the Road Maintenance Levy Fund, which is primarily intended to support road maintenance activities and related obligations.

The controversy has renewed debate over government procurement, transparency and the financial implications of terminating major infrastructure agreements.

Source:https://peopledaily.digital/news/ruto-reveals-why-kenya-paid-french-firm-ksh6-5-billion-over-flopped-rironi-mau-summit-contract?fbclid=IwdGRjcAVitbZjbGNrBWK1VWV4dG4DYWVtAjExAHBkb2YFc3J0YwZhcHBfaWQMMzUwNjg1NTMxNzI4AAEf8_b39vQVech2RDXLzaAsklZTAWS36tmxoQfN6MsQbHVcfKv3nUxxxbo1BYg_aem_hc672FzrdcWdYGaLC7Divg