Kenya Cancels €1.3 Billion Highway Deal, Seeks Chinese Contractor

Kenya has canceled a €1.3 billion highway construction deal with a French-led consortium led by Vinci SA, opting instead to award the project to a Chinese contractor. The decision follows concerns from the Kenya National Highways Authority (KeNHA) regarding the financial risks associated with low traffic volumes under the original agreement, which was deemed 'unbankable.' Initially signed in 2020 during former President Uhuru Kenyatta's visit to Paris, the project aimed to upgrade 140 kilometers of roadway between Nairobi and Nakuru. President William Ruto's administration indicated that the move reflects a broader trend of African nations reassessing their ties with former colonial powers in favor of new partnerships, particularly with China. This shift underscores China's growing influence in African infrastructure projects, while France's presence appears to be diminishing. Construction on the highway had not yet begun before the contract's termination.