The International Finance Corporation (IFC) has committed Ksh.39 billion ($320 million) in financing for the proposed Nairobi-Nakuru Highway.
The World Bank’s private sector financing arm is expected to approve the funds’ disbursement during the 2023/24 fiscal year, allowing more funding for the PPP-initiated project.
The Nairobi-Nakuru-Mau Summit Highway project, also known as the Nairobi-Nakuru-Mau Summit Highway, is expected to be one of Kenya’s first PPP road projects.
The World Bank Group has identified the project as one of the key deliverables underpinning its engagement with Kenya under the Country Partnership Framework (CPF).
The framework also calls for the IFC to increase its investments in the country as part of the World Bank Group’s overall support for fiscal and debt sustainability.
The project entails converting a section of the A8 Highway between Rironi and Mau Summit into a four-lane dual carriageway, as well as its operation and maintenance.
The project will also include the rehabilitation of the A8-South Highway between Rironi and Naivasha.
The project is operated by Rift Valley Highway Limited (RVHL), a consortium led by Vinci Highways and Meridian.
The Kenya National Highways Authority (KeNHA) has already signed a design, build, finance, operate, maintain, and transfer contract with the company.
Kenyans will be expected to pay road tolls over a 30-year period to assist the project’s operator and financiers in recouping their investment.
The African Development Bank (AfDB) approved a loan of Ksh.18.4 billion ($150 million) to Kenya earlier this year to help finance the toll highway.
