President William Ruto has explained why the Kenyan government paid billions of shillings to a French consortium following the cancellation of its contract to construct the Rironi-Mau Summit highway.
The controversial payment, which amounted to approximately KSh7.3 billion according to government disclosures, was made to settle obligations arising from the termination of the agreement with the French contractors.
The consortium comprised Vinci Highways SAS, Meridian Infrastructure Africa Fund and Vinci Concessions SAS, which had been awarded the contract during former President Uhuru Kenyatta's administration.
Speaking about the decision, Ruto's administration has maintained that the original agreement exposed Kenya to significant financial risks that could have placed an additional burden on taxpayers.
The French consortium had been expected to finance the construction of the highway through a Public-Private Partnership arrangement and recover its investment through toll charges collected from motorists.
However, the government raised concerns about the proposed financing structure, particularly the substantial service payments it would be required to make during the initial years of the agreement.
Treasury officials also questioned the affordability of the arrangement amid increasing public debt and limited fiscal space.
The government eventually terminated the contract and transferred the highway project to Chinese contractors, with the construction programme subsequently revised.
The compensation payment was intended to settle the dispute and prevent a potentially expensive international legal battle involving the French companies.
However, the payment has continued to attract public scrutiny, particularly after the Auditor-General questioned the manner in which the KSh7.31 billion was withdrawn from the Road Maintenance Levy Fund.
The audit raised concerns about the use of funds originally intended to support road maintenance and settle outstanding contractors' payments.
The Rironi-Mau Summit highway remains one of the government's major infrastructure projects, with authorities promising improved connectivity, reduced traffic congestion and easier transportation between Nairobi and Western Kenya.
The compensation controversy continues to raise questions about government contracting, accountability and the financial consequences of cancelling major infrastructure projects.
Sources;
https://peopledaily.digital/news/ruto-reveals-why-kenya-paid-french-firm-ksh6-5-billion-over-flopped-rironi-mau-summit-contract?fbclid=IwdGRjcAVitbZjbGNrBWK1VWV4dG4DYWVtAjExAHBkb2YFc3J0YwZhcHBfaWQMMzUwNjg1NTMxNzI4AAEf8_b39vQVech2RDXLzaAsklZTAWS36tmxoQfN6MsQbHVcfKv3nUxxxbo1BYg_aem_hc672FzrdcWdYGaLC7Divg
Leave a Reply