Kenya’s transport ministry lures private sector players to fund major road projects

Nyali Bridge is among those being considered for Public Private Partnership for an upgraded

The Government is enticing private sector players to invest in the development and maintenance of roads under the Public-Private Partnership model.

The Ministry of Transport yesterday hosted local and international investors and pitched to them five road projects that it has earmarked for development.

The investors will finance the road projects and recoup their investments by charging road users. Transport Principal Secretary John Mosonik said the move to partner with private sector was necessary to grow road infrastructure, which has lagged behind following inadequate investments due to budgetary constraints. He added that a road tolling policy that would enable private players operate road tolls and recoup investment was nearing completion.

“If we sit back and depend on the money allocated by the National Treasury, it means that we might not develop or maintain any roads. We must expedite road infrastructure development and this why we are bringing on board private sector players,” he said.

Mosonik spoke yesterday at the Kenya Public Private Partnership Road Investor Conference, where the ministry showcased projects that it plans to undertake in collaboration with the private sector.

He said allocation from the Treasury as well as money collected through the Road Maintenance Levy is not adequate for the development and maintenance of roads. He said revenues from the levy are meant for maintenance of roads, and even then, the money collected is short of what the ministry needs.

“If you look at the budget allocated to roads infrastructure projects, we have about Sh140 billion. The total revenue from fuel levy is about Sh50 billion and this is strictly for maintenance. We need more than Sh400 billion every year for the construction and maintenance of roads,” he explained.

Thika Road and the Nairobi Southern Bypass will be handed over to private sector players for maintenance, while the Nairobi-Nakuru-Mau Summit Road, the second Nyali Bridge and Nairobi-Mombasa Highway, will entail construction and later maintenance.