The Kenya National Highways Authority (KeNHA) has decided to terminate a EUR 1.3 billion (US$ 1.4 billion) road-building contract with a consortium led by French contractor Vinci Highways. 

The project aimed to upgrade a 140 km single-lane road into a dual carriageway connecting Nairobi to Nakuru and Mau Summit in the Rift Valley. Initially signed in Paris in 2020 during President Uhuru Kenyatta's tenure, the agreement included Vinci Concessions and Meridiam, with the consortium responsible for designing, financing, building, operating, and maintaining the highway over a 30-year concession period, recovering costs through toll collection. The KeNHA sought to renegotiate the contract terms due to concerns over the government's exposure to financial risks, particularly if traffic volumes fell below projections. The proposed toll charges, ranging from $6 to $50, were also deemed potentially unaffordable for many users. Vinci indicated that the revised terms would render the project unviable, leading to an impasse and subsequent termination notice from KeNHA.

Following the termination, Kenya is reportedly onboarding a Chinese contractor to take over the project. Discussions with a Chinese construction company have been underway, with Kenyan officials, including Finance Minister John Mbadi, engaging in talks in Beijing. President William Ruto is expected to follow up with a state visit to finalize agreements. The highway upgrade remains a priority for Kenya, with construction anticipated to commence in 2025.