Kisii Senator Richard Onyonka has petitioned the House to provide a comprehensive report on the financial performance of Nairobi Expressway since its inception.
The report, Onyonka said, should include a comparison of projected versus actual outcomes and outline mitigation strategies to address operational inefficiencies, optimise toll revenue and manage loan repayment costs effectively.
The project commissioned in 2022 under the Public-Private Partnership (PPP) model is said to be making losses despite the increase in the number of vehicles using it.
Two years into its operations, official data reveals that traffic on the
super highway has grown from 11,000 daily at the start to an average of
59,000.
Documents tabled by the Treasury in Parliament recently show that the project, once hailed as Kenya’s first significant and visible private partnership project made Sh1.2 billion in losses between July 2023 to June 30, 2024.
Tolls are collected in Kenya Shillings, which pundits see as steady presently – at about Sh130 to the USD.
“It is still a big loss because collection at the site is Kenya Shilling, every shilling we collect, we convert to USD and could lose up to 38 per cent,” an official told the Star.
With the costly foreign charges, Moja Expressway which manages it argues that it has had to bear the extra expense.
“We bear the loss again and again… toll rates are a way to sustain the project and give the investor confidence,” the official explained.
It is understood that the government has been slow to adjust the toll rates further.
The committee has now been tasked with evaluating the efficacy of the PPP model in delivering value for money in this project.
“The committee should recommend necessary policy adjustments to improve future infrastructure investments,” reads the petition.
It is also tasked with assessing the broader economic impact of toll-based infrastructure on citizens and propose measures to balance affordability with financial sustainability.
“It should propose actionable solutions to ensure the long-term operational viability of the expressway without overburdening taxpayers or compromising on service quality,” it states.
