President William Ruto has defended his administration's decision to terminate the previous contract for the Rironi-Mau Summit Highway, saying the government saved billions of shillings by negotiating an exit with the French contractor.
Ruto said the previous contractor had failed to construct any section of the road six years after being awarded the contract in 2020, instead taking the Kenyan government to court.
Responding to criticism from former Deputy President Rigathi Gachagua, the President said his administration chose to negotiate an exit after determining that prolonged litigation would cost taxpayers more money without guaranteeing construction of the highway.
"Six years later, not a single kilometre of the road had been done. Instead, we had a court case. Already, the French company had taken us to court," Ruto said.
He revealed that he personally raised the matter with French President Emmanuel Macron during a visit to France, seeking a negotiated settlement that would allow Kenya to move forward with the project.
"I told him, Mr President, we wanted to build a road. We didn't want a court case, and I think this company does not have the capacity to do this road, and that is why they are looking for reasons and excuses," Ruto said.
The President said the government subsequently negotiated with the French company and agreed to pay $50 million to terminate the contract.
He argued that proceeding with the court case could have cost Kenya between $200 million and $300 million and potentially delayed the project further.
"So we decided to pay $50 million exit because I could see clearly a matter that has gone to court was going to cost us possibly two or $300 million and no road would be built," he said.
Ruto said construction under the new arrangement had reached 40% in about one year, contrasting this with the previous six-year period, when no section of the road had been completed.
"Today, that road is 40% going on. In six years, not a single kilometre was done. We ended up with a quarter. In less than a year, now it's going to be a year. This month, we are 40% going," he said.
He also defended the financial terms of the current project, arguing it offered better value than the previous French agreement.
According to the President, the current highway project will cost Sh191 billion, compared with Sh249 billion under the previous contract, a difference of about Sh58 billion.
He further said the new arrangement would provide for the expansion of 210 kilometres of road into dual carriageway, compared to 175 kilometres under the French agreement.
Ruto added that the section between Naivasha and Nakuru would have six lanes over 70 kilometres, while the toll charges would also be lower under the current arrangement.
"The cost of the toll under the French agreement was going to be 12 shillings per kilometre. The cost under this contract is going to cost us eight shillings per kilometre," he said.
The President described the figures as facts, dismissing criticism of the project as propaganda.
However, Gachagua has accused the administration of mishandling the highway project, alleging corruption and irregularities in the termination of the previous contract.
The former Deputy President claimed that former President Uhuru Kenyatta had negotiated a Sh150 billion deal with a French company to construct the highway, which Ruto's administration cancelled.
Gachagua further alleged that the government paid the French contractor Sh7 billion before entering into a new arrangement with two Chinese companies at a cost of Sh200 billion.
"I maintain that there is no contract signed for that road," Gachagua said.
He also accused the government of illegally allocating Sh30 billion from the National Social Security Fund (NSSF) towards the project.
Gachagua claimed that Chinese contractors had declined to continue with the road expansion because they did not want to be associated with alleged corruption.