Sh8bn Taveta-Kajiado PPP road cancelled over cost concerns
Road construction. The 67-kilometre Taita Taveta-Njukini road was to be built under a public-private partnership (PPP) model and the project was scheduled to start five years ago, but a change in the design and its classification led to delays.
The Sh7.9 billion privately funded construction of the road linking Kajiado and Taita Taveta has been cancelled amid questions over value for money for taxpayers, hurting efforts to ease movement between the two counties.
Documents from the National Treasury published this month show that the contract for the 67-kilometre Taita Taveta-Njukini road was cancelled in June this year, just three months after the government had promised that construction would begin in earnest.
The private investors and contractor for the project have not been disclosed. Treasury has not also revealed the financial implications, if any, for termination of the deal. The law allows for penalties to be slapped on the procuring entity in case of terminating an already awarded contract.
The road was to be built under a public-private partnership (PPP) model and the project was scheduled to start five years ago, but a change in the design and its classification led to delays.
The construction of the road was key to boosting movement between the two counties, besides allowing traders and farmers to easily transport their products to Mombasa and Nairobi.
“The contracting authority therefore initiated termination of the project by following concerns on value for money. On June 6, 2024 The PPP Committee approved the project's termination in accordance with Section 8(1) (f) of the Act, and compliance with the guidance given by the PPP Committee,” the PPP Directorate says in disclosures.
“The project company was, however, not amenable to an amendment of the project within the PPP framework to enhance the value for money.”
Section 8(1) (f) of the Public Private Partnerships Act established the PPP Committee and gave it powers to, among others, approve negotiated contract terms, cancel procurements or terminate and amend project agreements.
The former Cabinet Secretary for Roads and Transport, Kipchumba Murkomen, had in February this year promised that construction of the road would begin a month later.
The Kenya Rural Roads Authority (Kerra) was initially the contracting authority for the project when the road was classified as a Class D road (roads connecting local centres and which are under the county governments).
But, the road was later upgraded to Class B (national truck road), bringing it under the supervision of the Kenya National Highways Authority (KeNHA).
The change in the road classification also prompted its redesign, which, however, saw the PPP committee question whether taxpayers would get value for money if the project was allowed to continue.
Besides allowing for movement of agricultural produce between the two counties and the cities of Nairobi and Mombasa, the new road would have been key to improving access to tourist attractions at the Coast and neighbouring Tanzania.
The Taita Taveta-Njukini road was one of the targeted projects under the government’s plan to build 10,000 kilometres of road support key growth sectors through private sector funding.
PPP financing for infrastructure projects has emerged as the government’s preferred model for delivering capital-intensive projects without tapping expensive commercial loans.
