Ruto Says New Rironi-Mau Summit Road Deal Saves Kenya KSh58 Billion

NAIROBI, Kenya - President William Ruto has defended the government’s revised deal for the construction of the Rironi-Mau Summit highway, saying the new arrangement will save Kenya approximately KSh58 billion while delivering a longer and wider road at a lower cost.

Speaking on Thursday during the Kenya Comprehensive School Heads Association (KECSHA) Annual General Meeting and Conference in Nyali, Mombasa, the President said the current project would cost approximately KSh191 billion, compared with KSh249 billion under the previous agreement with a French consortium.

According to Ruto, the difference represents a saving of close to KSh60 billion, with the revised project expected to cover 210 kilometres instead of the 175 kilometres provided for under the earlier contract.

Government cites stalled construction under previous deal

Ruto said the original contract was awarded to a French consortium in 2020 but construction had not commenced despite the passage of six years.

He argued that the dispute surrounding the agreement had threatened to expose the country to significant legal costs without delivering the road infrastructure.

The President said the government opted to negotiate an exit from the contract after assessing the potential financial consequences of continuing with the legal dispute.

“We decided to pay $50 million and exit the contract rather than continue with a suit that could cost us possibly between $200 million and $300 million, and then no road would be built,” Ruto said.

He explained that the government engaged French President Emmanuel Macron to help resolve the dispute and facilitate negotiations with the company.

The settlement enabled the government to proceed with a new arrangement involving Chinese contractors.

New deal promises a longer and wider highway

Under the revised plan, the Rironi-Mau Summit highway will cover approximately 210 kilometres, compared with the 175 kilometres under the previous agreement.

Ruto said the new design also provides for a 70-kilometre six-lane section between Naivasha and Nakuru, while the remaining sections will have four lanes.

The President maintained that the revised design offers greater infrastructure capacity at a lower construction cost.

He also disclosed that the project had reached approximately 40 per cent completion, adding that the government would closely monitor implementation to ensure it remains on schedule.

The highway is a key transport corridor linking Nairobi with Nakuru, western Kenya and neighbouring countries through the Northern Corridor.

Motorists expected to pay lower toll charges

The President further said the new arrangement would reduce the toll charges payable by motorists using the highway.

Under the current agreement, motorists are expected to pay KSh8 per kilometre, compared with KSh12 per kilometre under the previous French contract.

The government says the revised terms will make the road more affordable for users while supporting the development of a major transport route used by private motorists, public transport operators and commercial vehicles.

However, the long-term cost to motorists will also depend on the final tolling arrangements and the duration of the concession.

Questions over the French contract settlement

The government's decision to terminate the previous agreement has also attracted scrutiny over the compensation paid to the French consortium.

Ruto put the negotiated exit payment at approximately $50 million, equivalent to about KSh6.5 billion.

However, an Auditor-General's report cited in previous reporting questioned a KSh7.31 billion payment to the consortium, raising concerns about the use of public funds and value for money.

The difference between the amount cited by the President and the figure referenced in the audit report remains an issue requiring clarification.

The government has maintained that negotiating an exit was preferable to pursuing a potentially expensive and prolonged legal dispute.

Government eyes further highway expansion

Ruto also announced that the government had secured resources for a feasibility study to explore extending the dual carriageway towards Malaba through Eldoret, as well as towards Kericho, Kisii and Kisumu.

He further indicated that plans were underway to dual the Nairobi-Mombasa highway, with more details expected to be announced by the government.

The President said the administration would pursue alternative financing arrangements to support major infrastructure projects without imposing additional taxes or increasing public debt.

The Rironi-Mau Summit project is being implemented through public-private partnership arrangements involving Chinese contractors and the National Social Security Fund (NSSF).

While the government has presented the revised agreement as a better-value deal, the actual benefits to taxpayers will ultimately depend on the project's final construction costs, tolling terms, delivery timelines and independent oversight.