The Nairobi Expressway reported a Sh1.2 billion loss between July 2023 and June 30, 2024, highlighting struggles in Kenya’s landmark public-private partnership project. Treasury reports tabled in Parliament indicate the expressway earned Sh4.6 billion, while operational costs for the Chinese investor reached Sh5.8 billion.
Managed by Moja Expressway, a subsidiary of China Roads and Bridges Construction (CRBC), the highway averages 11,000 vehicles daily—falling short of the traffic target needed to break even. The investor operates under the Belt and Road Initiative, with a 30-year concession to recoup costs.
Key challenges include currency fluctuations due to dollar-denominated loans and rising interest rates. Although tolls are collected in Kenya Shillings, the conversion to USD results in revenue losses of up to 38%, according to officials. Despite financial strain, the government has resisted further toll hikes, leaving the operator to absorb additional costs.
This comes as other PPP ventures, such as the Sosian Menengai geothermal plant and roads annuity projects, reported profits. The expressway, however, remains pivotal in reducing travel times from JKIA to Nairobi CBD and is viewed as a strategic investment requiring more motorist uptake and favorable economic conditions to achieve sustainability.
