Kenya Shifts Gears: Drops French Consortium for Ksh.190B Highway Deal, Eyes China Instead
In a significant shift in international infrastructure partnerships, Kenya has officially announced plans to terminate a Ksh.190 billion highway expansion contract with a French-led consortium in favor of an expected deal with a Chinese contractor. The cancelled agreement, signed in 2020 during a Paris visit by then-President Uhuru Kenyatta, was aimed at transforming the 140-kilometer single-lane highway between Nairobi and Nakuru into a modern multilane road.
The consortium, led by France’s Vinci Highways and backed by Vinci Concessions and French private equity firm Meridiam SAS, was set to undertake the project under a public-private partnership (PPP) model. However, the Kenya National Highways Authority (KeNHA) has now confirmed the project’s formal termination.
According to KeNHA, the cancellation followed unsuccessful efforts to restructure the financial terms of the deal. “KeNHA requested a restructuring of the contract … but the proposal was considered unbankable thus creating a stalemate,” the agency said in a statement to Reuters.
While construction had not yet commenced, the termination ends a years-long negotiation process and underscores Kenya’s shifting preferences in its choice of international development partners.
Turning to Beijing
Two government sources with direct knowledge of the matter revealed that Kenya is now planning to hand the highway project to a Chinese firm, though the specific contractor has not yet been publicly named. The sources spoke on condition of anonymity due to the sensitivity of the negotiations.
This development comes amid renewed diplomatic engagement between Nairobi and Beijing. Finance Minister John Mbadi recently led a delegation to China for high-level talks, and local media reports suggest that President William Ruto is expected to make a state visit to China later this month.
Strategic Realignment or Financial Prudence?
The cancellation of the French consortium’s deal has reignited debate about Kenya’s long-standing infrastructure partnerships. While France has been a significant player in Kenya’s road, energy, and water sectors, China continues to dominate large-scale infrastructure projects across the country, including the Standard Gauge Railway and multiple highways.
Analysts suggest that China’s willingness to offer favorable financing terms and its experience with rapid project execution may be driving Kenya’s pivot.
“Kenya is under pressure to deliver results without increasing the fiscal burden,” said one Nairobi-based economist. “China’s model often aligns more closely with those needs.”
What’s Next?
With the project yet to break ground, the shift in contractors could still keep timelines on track—if negotiations with the Chinese firm are finalized swiftly. The highway is seen as a vital corridor for commerce, linking the capital to western Kenya and beyond.
As Kenya repositions itself in global infrastructure politics, the move underscores the balancing act the country faces: attracting investment, maintaining sovereign control, and securing sustainable financing for its ambitious development agenda.
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Kenya Shifts Gears: Drops French Consortium for Ksh.190B Highway Deal, Eyes China Instead