The Nairobi Expressway reported a financial loss of Ksh.1.2 billion in the 2023/2024 fiscal year, raising concerns about the sustainability of Public-Private Partnerships (PPPs) in financing large infrastructure projects.
According to Treasury data, the expressway generated Ksh.4.6 billion in revenue between July 2023 and June 2024, while its operational costs amounted to Ksh.5.8 billion.
Despite a fee hike introduced in early 2024, which increased toll charges from Ksh.100-Ksh.310 to Ksh.170-Ksh.500, profitability remained elusive.
Jeanne May, spokesperson for Moja Expressway—the road’s operator—cited two main challenges: the volatile Kenya shilling, which hit an all-time low of Ksh.160 against the dollar in January 2024, and rising interest rates. These factors heavily impacted loan repayment obligations.
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The expressway, a flagship project of the Uhuru Kenyatta administration, was constructed at a cost of Ksh.88 billion under a PPP agreement with the China Road and Bridge Corporation (CRBC). The CRBC will manage the 27-kilometer elevated road, which links Mlolongo to James Gichuru Road, for 27 years to recoup its investment before transferring ownership to the Kenyan government.
Increased traffic volumes on the expressway have yet to translate into profits, as operational costs and debt servicing continue to outweigh revenue. The project was financed through a 50% loan and 50% private investment.
This loss underscores the challenges facing PPP projects in Kenya, including fluctuating exchange rates and macroeconomic instability. Other ongoing PPP initiatives include the Sosian Menengai and Quantum Menengai geothermal power plants and road annuity programs.
The Nairobi Expressway remains a vital infrastructure project, but the latest financial results highlight the risks involved in balancing private investment with public benefit.
