Taxpayers Face Sh180.7 Billion Highway Risk as Ruto’s Mega Project Deals Come Under Scrutiny

Figures contained in the National Treasury’s draft 2027 Budget Policy Statement show that the highway accounts for nearly 44 per cent of the Sh413.81 billion in potential liabilities associated with ending public-private partnership (PPP) agreements prematurely.

The Treasury estimates that cancelling contracts covering the Rironi–Naivasha–Gilgil and Rironi–Mai Mahiu–Naivasha sections could trigger compensation of Sh93.38 billion. The Gilgil–Nakuru–Mau Summit section carries a further potential liability of Sh87.35 billion.

However, the figures do not represent money the government is immediately required to pay. They reflect maximum possible exposure should contractual conditions trigger compensation.

The project is being implemented under long-term agreements involving Chinese contractors. China Road and Bridge Corporation, working alongside the National Social Security Fund, is handling the first sections under a 30-year arrangement valued at approximately Sh96.38 billion.

Shandong Road and Bridge International was awarded the Gilgil–Nakuru–Mau Summit section at an estimated cost of Sh86.35 billion, also under a 30-year concession.

The financial concerns follow the government’s cancellation in 2025 of an earlier highway expansion agreement with a French consortium led by Vinci Highways. Kenya reportedly paid Sh7.3 billion to settle the dispute and avoid a potentially costly international legal battle.

Beyond the highway, the Nairobi Expressway carries a potential termination liability of Sh72.04 billion, while the smart driving licence project has an estimated exposure of Sh50.22 billion.

The Treasury cautions that the likelihood and timing of such payments cannot be predicted with certainty, and simultaneous termination of all projects is considered unlikely.

Nevertheless, the disclosures are likely to intensify calls for transparency, stronger oversight and careful assessment of long-term financial commitments involving public funds.

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