Ruto Reveals Why Kenya Had to Pay KSh6.5 Billion to Exit Road Deal

President William Ruto has explained why the Kenyan government agreed to pay approximately KSh6.5 billion to terminate the stalled Nairobi-Mau Summit Road construction contract, saying the decision was intended to prevent taxpayers from incurring significantly higher financial losses.

Speaking during the Kenya Comprehensive School Heads Association National Annual General Meeting in Mombasa on Thursday, November 12, Ruto revealed that the original contract had been awarded to a French company in 2020, but progress remained limited six years later.

The President said the situation became more complicated after the contractor took the Kenyan government to court, raising concerns about prolonged litigation, additional financial obligations and uncertainty over when the important highway connecting Nairobi to western Kenya would be completed.

According to Ruto, his administration reviewed the circumstances and concluded that negotiating an exit agreement would be cheaper than allowing the dispute to continue through lengthy court proceedings that could expose taxpayers to substantial losses.

Ruto disclosed that he personally raised the matter with French President Emmanuel Macron, explaining that Kenya wanted to construct the road rather than remain trapped in a prolonged legal dispute with a contractor he questioned its capacity to deliver.

The President said Kenya eventually agreed to pay the company an exit fee of US$50 million, approximately KSh6.5 billion, arguing that pursuing the court case could have cost the country between US$200 million and US$300 million.

Defending the new arrangement, Ruto maintained that the replacement project offers better value, with the current plan covering 210 kilometres compared to 175 kilometres under the previous contract. He also said the new arrangement would reduce motorists’ toll charges.

The Head of State further revealed that approximately 70 kilometres between Naivasha and Nakuru would be expanded into a six-lane highway. He said the ongoing Nairobi-Mau Summit Road project was 40 per cent complete.

Ruto promised that his administration would ensure the highway is completed within the shortest possible time and eventually extended to Malaba. He urged critics to examine the figures surrounding the two contracts, insisting that the negotiated settlement protected taxpayers from greater financial losses.