A legal challenge has emerged over Kenya's Sh150 billion Nairobi-Nakuru-Mau Summit highway project, with the Mota-Engil consortium alleging procedural flaws in the Public-Private Partnership (PPP) tender process. The 187-kilometer highway, a key infrastructure initiative under President Uhuru Kenyatta, has become a battleground between two international bidding groups.
The Mota-Engil consortium, comprising African Infrastructure Investment Fund 3 Partnership, Egis Projects S.A, Mota-Engil-Engenharia E Construcao Africa S.A, and Orascom Construction, filed a petition with the PPP committee on February 27, contesting Kenya National Highways Authority's (KeNHA) decision to designate Rift Valley Connect (RVC) as the preferred bidder. The dispute centers on tax calculation discrepancies that allegedly undermined fair competition.
RVC's bid of Sh159.5 billion contrasted with Mota-Engil's Sh194.9 billion proposal. However, both consortia faced scrutiny over tax projections. RVC's model underestimated income tax obligations by over Sh30 billion over 30 years, while Mota-Engil overstated its liabilities by Sh1.6 billion. The PPP Act of 2013 prohibits bid price increases during negotiations, a rule RVC allegedly violated by proposing a cost adjustment to cover its tax shortfall.
Treasury Principal Secretary Kamau Thugge intervened in November 2018, warning that RVC's tax miscalculations could create financial instability for the project. Intercontinental Consultants and Technocrats Limited (ICT) confirmed both bids violated tax laws, recommending potential rejection of both proposals. Despite these concerns, KeNHA's director-general Peter Mundinia upheld the decision, citing transparency principles under the PPA Act.
The project, which includes expanding the Nairobi-Mau Summit Road to a four-lane dual carriageway and constructing toll stations, aims to address safety concerns. The 130-kilometer Nairobi-Nakuru stretch was ranked the world's fourth most dangerous road in 2014, following a 2016 chemical tanker explosion that killed over 40 people.
