15.5 billion shillings is the price of the clearing medium for the Nairobi highway
- Billions of shillings will see telecommunications companies Kenya Power and Nairobi Water and Sewerage Company (NWSC) relocate their infrastructure.
- Other key utilities, including four pedestrian bridges, will be demolished and relocated along the 27.1 km double-decker highway.
Taxpayers will spend 15.5 billion shillings to compensate owners and owners of the utilities that paved the way for the construction of the Nairobi highway.
The billions of shillings will see telecommunications companies, Kenya Power and Nairobi Water and Sewerage Company (NWSC) relocate their infrastructure as part of the modernization of the highway which aims to decongest the road to Mombasa.
Other key utilities, including four pedestrian bridges, will be demolished and relocated along the 27.1 km double-decker highway.
Construction of the 59 billion shillings Nairobi Expressway began last year and has come at a cost to businesses and residents along Mombasa Highway with motorists enduring the traffic jams.
“The Government of Kenya’s funding component for the project includes funding for the acquisition of land for the right-of-way, relocation of utilities and government restitution costs,” Transport Secretary James Macharia said yesterday at Parliament.
This means that an equivalent of 26 percent of the cost of the project will go to offsets, highlighting the high cost of acquiring the land for the country’s first double-decker highway.
China Road and Bridge Corporation (CRBC) is constructing the road, the construction of which is financed by a private company. Moja Expressway, a subsidiary of CRBC, will operate the route for 27 years to recover funds from toll charges.
Moja Expressway Company will pocket approximately 3.9 billion shillings per year, or 35% of the revenue generated from the toll fees charged to motorists who will use the 27.1 km road.
The toll charges will be based on the dollar to protect the Chinese operator against exchange losses.
The charges are expected to generate revenue of 302.5 billion shillings, which will bring the Chinese company an annual profit of 3.9 billion shillings.
Motorists will have the option of using the freeway to escape heavy traffic for a fee or toll fee to help the private company building the road recoup its investment.
Kenyans will need to pay between Sh100 and Sh1,550 in toll charges, depending on vehicle size and distance traveled, but those using the lower section of the double-decker highway will be spared the toll charges.
The Nairobi Expressway consists of a two-lane, four- and six-lane highway in the existing median of Mombasa Road / Uhuru Highway / Waiyaki Way. It will also have 11 interchanges or exits and entry roads that will serve as toll ramps.