- Kenya ends road deal signed with French firms in 2020
- KeNHA raised concerns over high risk placed on the government
- Contract was declared unbankable after failed restructuring
- Chinese firms now set to take over the project
- Ruto expected in China for a state visit soon
Kenya has officially pulled out of a road construction deal that was initially signed in Paris back in 2020 during former President Uhuru Kenyatta’s state visit to France.
The cancelled agreement involved French infrastructure giant Vinci Highways and its partners, including Meridiam SAS and Vinci Concessions.
Why the Deal Collapsed
Sources inside government say the cancellation came after sharp disagreements about who would carry the financial risk if traffic projections on the road fell short.
The Kenya National Highways Authority (KeNHA) revealed that the contract placed most of the burden on the government side.
“We tried to renegotiate the terms, but the revised proposal was not financially viable, leading to a deadlock,” KeNHA told Reuters.
This standoff led to the contract being formally terminated.
Chinese Firms Set to Take Over
With the French deal off the table, Kenya has now shifted focus to Chinese partners.
This follows a visit by Treasury CS John Mbadi to Beijing, where he led a team of Kenyan officials for high-level meetings with China’s Minister of Finance, Lan Fo’an.
In line with this new partnership, President William Ruto is also preparing for a state visit to China later this month, signaling a renewed focus on Sino-Kenyan cooperation for major infrastructure projects.
