The Kenya National Highways Authority (KeNHA) announced it had revoked a Privately Initiated Proposal (PIP) to construct the Nairobi-Mombasa (Usahihi) expressway.
The mega road project was to be constructed under a Public-Private Partnership (PPP) model, covering a 459-kilometer corridor from Mlolongo in Machakos County to Bonje in Mombasa County.
KeNHA, however, noted that following evaluation of documents from the Contracting Authority, and the submission of the report to the PPP Committee, National Treasury & Economic Planning for approval, the proposal was found to have not met the relevant criteria and should be abandoned.
The committee further directed the contractor to consider restructuring the project by expanding the existing A8 highway.
“The proposal may then be resubmitted to the Committee for a fresh determination in line with Section 43(12) of the PPP Act, 2021,” said KeNHA.
In 2022, KeNHA revealed that the proposed road will take a maximum of five years to complete.
KeNHA explained the project would see the State deliberating on the terms of its construction, from planning, cost and implementation of the whole project.
According to reports, the project was awarded to Korean firm Korean Overseas Infrastructure and Development Corporation (KIND) after US firm Bechtel Engineering turned down the government over the proposed financing model
The project was based on a toll fee business model where it would source funding and then recoup its cost through toll fees.
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