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July 9, 2026
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Treasury Explains Why It Scrapped Original Rironi–Mau Summit Highway Deal

Treasury Explains Why It Scrapped Original Rironi–Mau Summit Highway Deal

Motorists using the 139-kilometre highway will incur a cost of up to Ksh8 per kilometre once the road becomes operational, a result of the new PPP modedl by the ministry...

✨ Key Highlights

The National Treasury has defended its decision to scrap the original Nairobi–Nakuru–Mau Summit Highway contract, opting for a new toll-based model to improve fiscal sustainability.

  • The original deal would have cost the government approximately Ksh23 billion annually, a figure deemed unsustainable.
  • Treasury Cabinet Secretary John Mbadi explained the shift away from a model that exposed taxpayers to a projected funding gap of up to Ksh200 billion in 15 years.
  • The new Public Private Partnership (PPP) arrangement shifts financial risk to road users, with motorists potentially paying up to Ksh8 per kilometre.

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Part of the Day's Coverage

Treasury Defends Economic Policies While Managing Major Infrastructure Projects - July 2026

National Treasury and Economic Planning Cabinet Secretary John Mbadi has defended the government's economic reform agenda, particularly the newly enacted Sovereign Wealth Fund, asserting it will secure Kenya's future. The National Treasury has defended its decision to scrap the original Nairobi-Nakuru-Mau Summit Highway contract, opting for a new toll-based model to improve fiscal sustainability. Treasury Cabinet Secretary John Mbadi has appointed six members, including Lawrence Kibet and James Mworia, to the National Infrastructure Fund Board, signaling a significant step towards operationalizing the new fund. A Kenyan constitutional lawyer, Levi Munyeri, has threatened legal action against the government, demanding public participation before the construction of the proposed Ksh2.59 trillion Dangote oil refinery in Lamu.

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