MPs: Come clean on Nairobi Expressway's financial performance
A section of the Nairobi Expressway at the Southern Bypass Toll Station on January 2, 2024.
What you need to know:
- The committee, chaired by Kiambu Senator Karungo Thang'wa, has been mandated to investigate and report on the financial performance of the expressway since its inception, including a comparison of projected and actual results.
- The committee is also expected to outline mitigation strategies to address operational inefficiencies, optimise toll revenues and effectively manage loan repayment costs.
MPs have called on the government to come clean on funds collected on the multi-billion shilling Nairobi Expressway amid conflicting information on the financial performance of the project.
Since its inauguration by former President Uhuru Kenyatta in July 2022, there has been a mystery surrounding the collections made on the use of the Sh88 billion project.
Kisii Senator Richard Onyonka said that recent financial reports suggest worrying trends that warrant further scrutiny.
He said there had been conflicting information on the performance of the expressway and called on the Senate Committee on Roads and Transport to investigate the financial performance of the project.
The committee, chaired by Kiambu Senator Karungo Thang'wa, has been mandated to investigate and report on the financial performance of the expressway since its inception, including a comparison of projected and actual results.
The committee is also expected to outline mitigation strategies to address operational inefficiencies, optimise toll revenues and effectively manage loan repayment costs.
“Recent financial reports suggest concerning trends that warrant further scrutiny. I would like the committee to assess the broader economic impact of toll-based infrastructure on citizens and propose measures to balance affordability with financial sustainability,” said Mr Onyonka.
A report tabled in Parliament in November this year showed that the expressway made a loss of Sh1.2 billion between July 2023 and June 30, 2024.
National Treasury data showed that the project earned Sh4.6 billion at a time when the Chinese investor's operating costs were Sh5.8 billion.
However, Moja Expressway chief executive officer Steve Zhao said in February 2023 that the expressway had collected about Sh2 billion in tolls since the road was launched in July 2022.
He said people spend an average of Sh200 from one exit to another, but some reports say motorists pay tolls of up to Sh417 to use the road.
By February 7, 2023, around 10 million vehicles had used the Expressway, with an average of 50,000 vehicles using the road every working day.
However, there have been some conflicting reports on the exact number of vehicles using the Expressway, with some reports putting the figure at an average of 11,000 vehicles per day.
The Nairobi Expressway is a major infrastructure project that was commissioned in 2022 under the Public Private Partnership (PPP) model.
The expressway is operated by the China Road and Bridge Corporation Company (CRBC) under a 27-year concession agreement to recoup its investment and is expected to generate an estimated Sh106.8 billion profit over the 27 years it will own the expressway.
The project, which was designed as a financially sustainable solution to decongest Nairobi, will improve urban mobility to ensure that the capital is decongested and also contributes to Kenya's economic growth.
The Expressway, one of China's flagship projects in Kenya and East Africa under the Belt and Road Initiative, cuts travel time from JKIA to Nairobi city centre from two hours to 20 minutes.
The 27.4-kilometre double-decker road connects Westlands to Jomo Kenyatta International Airport and was built by a Chinese contractor under a public-private partnership model at a total cost of Sh88 billion.
The road has 11 toll plazas, 54 toll booths and 54 cameras along the 27km expressway, with 126 cameras inside the toll booths.
The Expressway has 11 interchanges at Mlolongo, Standard Gauge Railway, JKIA, Eastern Bypass, Southern Bypass, Capital Centre, Haile Selassie Avenue, Museum Hill, Westlands and James Gichuru Road.
Senator Onyonka wants the committee to come up with viable solutions to ensure the long-term viability of the expressway without overburdening the taxpayer or compromising service quality.
This is in addition to examining whether the expressway can be extended to go all the way to Thika Highway or to Ongata Rongai and other locations in the outskirts of Nairobi City.
“The committee should evaluate the efficacy of the PPP model in delivering value for money in the project, given the reality of what has happened with the Adani debacle, and recommend the necessary policy adjustments to improve future infrastructure investments in our country,” said Mr Onyonka.
