By using this site, you agree to the Privacy Policy and Terms & Conditions.
Accept
Okay.ngOkay.ngOkay.ng
Font ResizerAa
  • News
    • Politics
  • Entertainment
  • Business & Economy
  • Sport
  • Tech
Reading: Kenya Scraps $1.3 Billion French Highway Deal, Eyes Chinese Contractor
Share
Font ResizerAa
Okay.ngOkay.ng
  • News
  • Entertainment
  • Business & Economy
  • Sport
  • Tech
Search
  • News
    • Politics
  • Entertainment
  • Business & Economy
  • Sport
  • Tech
Follow US
  • About Okay.ng
  • Advertising on Okay.ng
  • Contact Okay.ng
  • Careers
  • Meet the Team behind Okay.ng
  • Ownership and Funding of Okay.ng
  • Editorial Principles at Okay.ng
© OKN MEDIA PUBLISHING 2022 - All rights reserved
News

Kenya Scraps $1.3 Billion French Highway Deal, Eyes Chinese Contractor

Genesis Obong
By Genesis Obong
Published: April 13, 2025
Share
3 Min Read
Kenya highway deal
SHARE

In a significant shift that signals potential changes in Kenya’s infrastructure development partnerships, the government has announced the termination of a 1.3-billion euro ($1.3 billion) highway expansion contract with a French consortium led by Vinci SA. The decision, rooted in disputes over financial terms, has paved the way for a Chinese contractor to potentially step in, according to government officials and sources.

The project, initially signed in Paris in 2020 during former President Uhuru Kenyatta’s tenure, aimed to transform a 140-kilometer single-lane road connecting Nairobi to Nakuru into a multilane highway. However, the Kenya National Highways Authority (KeNHA) expressed concerns that the agreement placed excessive financial risks related to traffic demand on the Kenyan government.

“KeNHA requested a restructuring of the contract… but the proposal was considered unbankable thus creating a stalemate,” the agency stated to Reuters, clarifying the impasse that led to the termination notice. The project had yet to commence construction.

The French consortium, comprising Vinci Highways, Meridiam SAS, and Vinci Concessions, now faces the prospect of losing this major infrastructure undertaking. Vinci declined to comment, while Meridiam did not immediately respond to requests for comment.

- Advertisement -

The emerging narrative suggests a strategic pivot towards Chinese contractors. Two anonymous sources with direct knowledge of the government’s plans indicated that a Chinese company, whose identity remains undisclosed, is slated to take over the project. This potential shift underscores the growing influence of Chinese investment in African infrastructure.

Read Also: Kenya Eyes Slimmer Budget Deficit, Increased Spending in 2025/26

The timing of this decision coincides with high-level diplomatic engagements. Finance Minister John Mbadi recently led a delegation to Beijing, and reports suggest that President William Ruto is scheduled for a state visit to China later this month. These developments have sparked discussions about the evolving dynamics of Kenya’s international partnerships.

From my perspective, this situation highlights the complex interplay between economic feasibility and geopolitical strategy in large-scale infrastructure projects. The need for transparency and equitable risk-sharing is crucial in public-private partnerships. The impact on local communities, who stand to benefit from improved connectivity, remains a key consideration.

- Advertisement -

The termination of the French contract and the potential engagement of a Chinese contractor raise several questions. What will be the terms of the new agreement? How will this decision affect Kenya’s relationships with its international partners? And most importantly, how will it serve the long-term development goals of the Kenyan people?

This unfolding story is more than just a contract dispute; it is a reflection of Kenya’s strategic decisions in a rapidly changing global landscape. As we continue to monitor these developments, it is clear that the implications will be far-reaching.

Stay Updated on the Go with Our Latest News—Join Our WhatsApp Channel Now!
TAGGED:ChinaContractsFinanceFrancehighwaysInfrastructureKenyaVinci
Share This Article
Facebook Whatsapp Whatsapp Telegram Email Copy Link Print
ByGenesis Obong
Follow:
Genesis Obong is a Journalist with relevant experience in Business, Finance and Economic matters in Nigeria and across the West African space.
Previous Article Oando Pipelines Hit by Sabotage in Nigeria’s Bayelsa State, Disrupting Oil and Gas Operations
Next Article Presidency Downplays US Court Order to Release Drug Investigation Records

Connect with Okay on Social

FacebookLike
XFollow
InstagramFollow
TelegramFollow

Dollar/Naira Rates

Dollar to Naira Exchange Rate

Okay.ng Logo
Buy Rate ₦1,605.00
Sell Rate ₦1,620.00

Last updated: 3 weeks ago (June 3, 2025 2:33 pm)

Displayed rates are for informational purposes only and are subject to change.

USD/NGN Converter

- Advertisement -
- Advertisement -
Ad imageAd image
- Advertisement -
Ad imageAd image

Recent Posts

BREAKING: President Tinubu Endorses Four Major Tax Reform Bills
News Top stories
Lagos State Government
Lagos State Government Refutes Peter Obi’s Allegation of Property Demolition, Orders Probe
News
Oyo State Governor Seyi Makinde Renames Polytechnic Ibadan in Honour of Late Dr. Omololu Olunloyo
News
BREAKING: President Tinubu Withholds Assent to NDLEA Bill Over Proceeds Clause
News
BREAKING: High Court in Lafia Sentences Timileyin Ajayi to Death for Killing Corps Member
News
- Advertisement -
Ad imageAd image

You May Also Like

PoliticsTop stories

Barau Jibrin Pledges Unwavering Support for President Tinubu on 2027 Election Decisions

Oluwadara Akingbohungbe
Oluwadara Akingbohungbe
June 26, 2025
News

Ogun State Chief Judge Urges Lawyers to Prioritize Human Rights Over Tradition

Oluwadara Akingbohungbe
Oluwadara Akingbohungbe
June 26, 2025
Nigeria Police - file photo
Crime

Police Launch Manhunt After Female Farmer Found Dead in Ondo State

Oluwadara Akingbohungbe
Oluwadara Akingbohungbe
June 26, 2025
Okay.ngOkay.ng
Follow US
© OKN MEDIA PUBLISHING 2025 - All rights reserved
  • About Okay.ng
  • Advertising on Okay.ng
  • Contact Okay.ng
  • Careers
  • Meet the Team behind Okay.ng
  • Ownership and Funding of Okay.ng
  • Editorial Principles at Okay.ng
adbanner
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?