Kisii Senator Richard Onyonka has called on the Senate to produce a comprehensive report detailing the financial performance of the Nairobi Expressway since its launch.
The report, he said, should compare the project’s projected outcomes with actual results and propose strategies to mitigate operational inefficiencies, enhance toll revenue, and manage loan repayment costs effectively.
Commissioned in 2022 under the Public-Private Partnership (PPP) model, the Nairobi Expressway has seen a steady increase in traffic, growing from 11,000 vehicles daily at the start to an average of 59,000. Despite this growth, the project recorded losses of Ksh 1.2 billion between July 2023 and June 2024, according to Treasury documents presented in Parliament.
One key challenge is the toll collection system, which operates in Kenyan Shillings but requires conversion to US Dollars for loan repayments.
This exchange process reportedly results in up to a 38% loss, exacerbating financial strain.
Moja Expressway, the managing company, has expressed concerns over these foreign currency conversion costs, noting that toll rates are critical to maintaining investor confidence but have been slow to adjust.
The Senate committee has been tasked with assessing the efficacy of the PPP model in delivering value for money and proposing policy adjustments to enhance the viability of future infrastructure investments.
The petition also calls for measures to address these recurring financial challenges to ensure the sustainability of the project.
