The Nairobi Expressway has posted a loss of Sh1.2 billion between July 2023 and June 30, 2024, despite an increase in traffic and higher toll fees.
Latest data from the Treasury shows the expressway generated revenue valued at Sh4.6 billion for the period under review, compared to the operational costs totalling Sh.5.8 billion.
As the government shifts to public-private partnerships (PPPs) for financing of big infrastructure projects, this dip in profits paints a grim picture. Losses in some of the PPP ventures are so high that “we are seeing the need to adjust the rates in the near future,” said a source familiar with the expressway report.
According Treasury, other PPPs projects include the 35MW Sosian Menengai geothermal power plant, which posted a Sh2.3 billion profit, the Quantum Menengai Geothermal Power Plant, and the roads annuity programme.
It was in January 2024 when the government increased the charges for using the Nairobi Expressway from a range of Sh 100 to Sh 310 to a new one of Sh 170 to Sh 500 across all toll stations along the Mlolongo-Westlands route.
The fresh charges, gazetted on December 31, 2023, took effect immediately with the Roads and Transport Cabinet Secretary at the time Kipchumba Murkomen – now the Sports CS – saying “The Base Toll Rates may be adjusted as per the CPI and Exchange Rate on and after the Commercial Operation Date.”
The expressway, built to decongest Mombasa Road, Uhuru Highway and Waiyaki Way, has 11 tolling stations, 54 toll plazas, and 54 cameras along the 27km expressway, with 126 cameras inside the toll plazas.
