Kipchumba Murkomen Explains Increase Of Nairobi Expressway Toll Rates: "Depreciation Of Shilling"

• Transport CS Kipchumba Murkomen explained that the funds spent on building the Nairobi Expressway were borrowed in US dollars, hence the adjustment
• The CS said the formulae for computing the new rates were embedded in the PPP agreement taking into account the loan facility by the investor
• In a gazette notice released on December 19, 2023, the toll fees per single trip from Westlands to Mlolongo station increased from KSh 250 to KSh 500

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Transport Cabinet Secretary (CS) Kipchumba Murkomen has defended the increase of Nairobi Expressway toll rates by 50%.

In a statement on X (formerly Twitter), the CS clarified that the charges were reviewed based on the depreciation of the Kenyan shilling.

Murkomen explained that the funds spent on building the road were borrowed in United States (US) dollars, hence the adjustment.

"The adjustment was done based on the project agreement taking into account the depreciation of the Kenya shilling to the United States dollar since the time of gazettement of the toll rates in April 2022. The formulae for computing the new rates are already embedded in the agreement taking into account the loan facility by the investor which was borrowed using USD," Murkomen posted.

What are the new Nairobi Expressway charges?

In a gazette notice released on December 19, 2023, the toll fees per single trip from Westlands to Mlolongo station increased from KSh 250 to KSh 500.

From Mlolongo to Nairobi (Haile Selassie station), motorists will pay KSh 410 per trip.

Besides the exchange rate, Murkomen noted that the changes were subject to the Consumer Price Index (CPI).

Kenya's CPI has been dropping in the past few months as inflation eases, but the shilling continues to decline against the US dollar and other major currencies.

The Kenyan currency lost value against prominent currencies such as the Euro, Pound Sterling, US Dollar, and Japanese Yen.

Why Kenyans will pay more for the Nairobi Expressway

The Nairobi Expressway was built on a public-private partnership between Kenya and China Road and Bridge Corporation.

The firm was supposed to recover its investment via tolling fees paid by motorists for 27 years.

However, the government is still funding the project, which will see taxpayers spend over KSh 24.8 billion.