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Ruto Commissions Sh170B Highway Using Private Partnerships, Promises 15,000 Youth Jobs

President unveils debt-free infrastructure plan for Nairobi-Nakuru and Naivasha corridors, promising 15,000 jobs for youth

KIAMBU COUNTY – President William Ruto has commissioned two major highway projects valued at more than Sh170 billion, marking what he described as a transformative shift in how Kenya finances large-scale infrastructure without increasing the national debt burden.

The Thursday launch in Kiambu County covered the Nairobi-Nakuru-Mau Summit Road (A8) and the Nairobi-Mai Mahiu-Naivasha corridor, both of which will be developed through a Public-Private Partnership arrangement that keeps the projects off the government’s balance sheet.

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Breaking the Infrastructure Financing Trap

During his address, President Ruto outlined what he characterized as Kenya’s historical infrastructure dilemma, where successive administrations faced three problematic options when considering major projects.

The head of state explained that funding through the national budget proved impossible because a single highway could consume nearly half the entire annual development allocation. Traditional borrowing presented its own challenges given Kenya’s existing debt obligations and constrained fiscal space. The third alternative of delaying development was unacceptable given the country’s infrastructure needs.

According to the president, this impossible choice resulted in development stagnation and what he termed a quiet paralysis in infrastructure expansion. The PPP model represents the administration’s solution to escape this constraint by leveraging private sector capital and expertise while maintaining government oversight.

Project Specifications and Scope

The infrastructure initiative encompasses two complementary sections spanning a combined 233 kilometers. The Nairobi-Nakuru-Mau Summit Road covers 175 kilometers, while the Nairobi-Maai Mahiu-Naivasha segment adds another 58 kilometers to the network.

Both corridors will undergo comprehensive modernization into multi-lane dual carriageways equipped with contemporary features. The Nairobi-Nakuru-Mau Summit section will be reinforced to handle heavy commercial vehicles, incorporating new interchanges, dedicated truck lanes, pedestrian overpasses, and intelligent transportation systems.

The Nairobi-Maai Mahiu-Naivasha route will be upgraded to provide efficient connectivity to the Naivasha Inland Container Depot and the expanding industrial zone in the area. These highways serve as critical arteries linking Kenya to regional trading partners including Uganda, South Sudan, Rwanda, Burundi, and the Democratic Republic of Congo.

Economic Impact and Employment

President Ruto emphasized the employment generation potential of the megaproject, projecting that 15,000 young Kenyans will acquire practical skills during the construction phase. The administration has prioritized local content requirements and positioned Kenyan businesses to participate in various aspects of project delivery.

The president acknowledged the involvement of Chinese partners in bringing technical expertise to the ventures while building capacity among local contractors and engineers. This collaboration aims to ensure knowledge transfer alongside project completion.

Regional Integration Benefits

The upgraded highways are expected to significantly reduce travel time and transportation costs along one of East Africa’s busiest trade corridors. Improved road conditions and expanded capacity should facilitate faster movement of goods between the Port of Mombasa and landlocked countries in the interior.

Enhanced connectivity to the Naivasha logistics hub positions that area as an increasingly important node in the Northern Corridor transport network. The roads will also serve domestic traffic between Kenya’s capital and the agriculturally productive Rift Valley region.

Broader Infrastructure Agenda

Thursday’s launch forms part of a wider infrastructure roadmap that President Ruto outlined for his administration. He announced plans to commission additional dual-carriageway projects across the country in coming months.

The president also revealed intentions to expand and modernize airports and seaports while extending the Standard Gauge Railway from its current terminus in Naivasha to Kisumu and eventually to Malaba at the Uganda border. He indicated that SGR extension work would commence in January 2026.

Financing Model Under Scrutiny

While the administration touts the PPP approach as debt-free for government, analysts note that such arrangements typically involve long-term revenue commitments or guarantees that carry fiscal implications. The specific terms of the private sector agreements for these highways have not been publicly disclosed.

Questions remain about toll structures, return guarantees to investors, and the total cost to road users over the concession period. The government maintains that this financing mechanism allows infrastructure development to proceed while preserving borrowing capacity for other priorities.

New Development Paradigm

President Ruto framed the highway launch as evidence of a new development philosophy that emphasizes partnership with private capital rather than reliance on traditional government financing. Whether this model proves sustainable and replicable for other large infrastructure projects remains to be demonstrated as implementation proceeds.

For now, the administration is banking on the PPP approach to deliver the roads Kenya needs while navigating the constraints of a challenging fiscal environment.