Ruto Defends Sh6.4bn French Contractor Payout, Says New Highway Deal Saves Kenya Sh58bn

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The President says the revised Rironi-Mau Summit project will cover 210 kilometres at Sh191 billion, while Gachagua continues to question the termination payment and the role of pension funds.

NAIROBI, Kenya – President William Ruto has defended the government’s decision to pay a French contractor $50 million (about Sh6.4 billion) to exit the original Rironi-Mau Summit Highway agreement, arguing that the negotiated settlement saved taxpayers from a potentially more expensive legal battle.

Ruto said the previous contract, awarded in 2020, had failed to deliver construction works after six years, with the dispute instead ending up in court.

Speaking in Mombasa on Thursday, November 12, the President said his administration decided to negotiate an exit after assessing the potential financial and time costs of continuing with litigation.

“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,” he said.

Ruto 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 proceed with the stalled project.

He said the government eventually agreed to pay $50 million to terminate the arrangement, arguing that a court battle could have cost the country between $200 million and $300 million without guaranteeing that the road would be built.

The President’s defence comes amid criticism from former Deputy President Rigathi Gachagua, who has questioned the termination payment, the new contract and the financing arrangements involving the National Social Security Fund (NSSF).

Ruto cites Sh58bn difference in project costs

The President said the revised highway project would cost Sh191 billion, compared with Sh249 billion under the previous French agreement.

According to Ruto, the difference of approximately Sh58 billion represents savings to taxpayers, while the new arrangement would deliver a longer road.

The current project covers approximately 210 kilometres, compared with 175 kilometres under the previous contract.

Ruto also said the Naivasha-Nakuru section, covering about 70 kilometres, would be expanded into a six-lane highway, while the remaining sections would be upgraded to dual carriageways.

He further defended the toll charges under the revised arrangement, saying motorists would pay Sh8 per kilometre compared with Sh12 per kilometre under the earlier French agreement.

The President said construction had reached approximately 40 per cent in less than a year, contrasting the progress with the six years during which the previous contract remained stalled.

The current project is being undertaken by China Road and Bridge Corporation, with the government targeting completion next year.

Gachagua questions Sh6.4bn exit payment

Gachagua has accused the administration of mishandling the cancellation of the French contract and the subsequent award of the highway project to Chinese companies.

The Democracy for the Citizens Party leader has claimed that the original agreement negotiated during former President Uhuru Kenyatta’s administration was worth approximately Sh150 billion before it was cancelled.

He has also alleged that the government paid Sh7 billion to the French contractor before entering into a new arrangement worth about Sh200 billion.

In separate remarks, Gachagua accused the President of benefiting personally from the cancellation payment, an allegation that has not been independently established.

He has further questioned whether the new road contract was properly executed, claiming that Chinese companies had concerns about financing the project because of political risks ahead of the 2027 General Election.

Gachagua has also alleged that Sh30 billion belonging to NSSF members was unlawfully channelled into the project.

What NSSF has said about its involvement

The allegations surrounding pension contributions have brought renewed attention to the structure of NSSF’s participation in the highway project.

In February 2026, NSSF General Manager for Finance and Investments Ronald Nyamosi said the Fund was participating as an equity investor alongside China Road and Bridge Corporation.

Nyamosi said NSSF’s exposure was limited to 40 per cent of the equity portion, estimated at between Sh20 billion and Sh25 billion, with the remaining financing expected from the Chinese partner and lenders.

He maintained that the investment was structured to generate returns over the road’s concession period.

The explanation confirms NSSF’s involvement in the project but does not, on its own, establish Gachagua’s allegation that Sh30 billion was illegally transferred to the Chinese contractors.

The distinction between an approved investment commitment, the amount actually invested and money disbursed to contractors remains important in assessing the claims.

Treasury Cabinet Secretary John Mbadi has also defended the revised project cost, arguing that comparisons with the earlier French agreement must account for changes in the road’s design and commercial structure.

Highway project remains under scrutiny

The Rironi-Mau Summit Highway is a major transport corridor linking Nairobi to the Rift Valley and western Kenya, making its completion significant for motorists, businesses and the movement of goods.

The revised arrangement has been presented by the government as a way of delivering a longer road at a lower overall cost, with improved capacity along the Naivasha-Nakuru section.

However, questions over the exit payment, financing structure, toll charges and implementation of the new contract continue to fuel political debate.

Ruto has maintained that the negotiated termination prevented a costly legal dispute and allowed construction to begin, while Gachagua insists that the government must account for the financial decisions made during the transition.

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