Despite an increase in traffic, Nairobi Expressway explains why it lost Ksh. 1.2 billion.

The increase in fees at the start of 2024 was supposed to make the elevated road profitable. As a result, fees are now between Ksh. 170 and Ksh. 500 for all stations, up from the previous range of Ksh. 100 to Ksh. 310.

Even though traffic on the road increased, Jeanne May, a spokesman for Moja Expressway, the company that runs the road, blamed the loss on high interest rates and the Kenyan shilling’s volatility.

She clarified that the expressway was financed in two ways: half via a loan and the other half via the PPP model. She pointed out that as a result, interest rates had increased over time. against the US dollar.

“The interest rates on the loan we still owe have increased, and we have to pay it back. The shilling’s volatility in relation to the dollar must also be taken into account,” she said.

The shilling saw volatility against the dollar in early 2024, plunging to an all-time low of Ksh.160 in January. Experts at the time accused the government of being slow to read the world market. The Kenyan shilling is currently worth Ksh.129 in relation to the US dollar.

As part of the government’s efforts to involve private investors in large-scale infrastructure projects, the report documented six additional PPP projects nationwide. These consist of the Kenya Defense Forces Residential Accommodation Project, the 35 MW Sosian Menengai Geothermal Power Plant and the 35 MW Quantum Menengai Geothermal Power Plant Project. The Road Annuity Program’s Lot 33, Lot 15, and Lot 18 are additional examples.