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Nairobi Expressway toll fee hiked before launch

Kenyan Business Feed by Kenyan Business Feed
Nairobi Expressway toll fee hiked before launch
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The government has reviewed Nairobi Expressway toll charges to match the weak shilling against the strengthening of the dollar. The new move will see motorists paying up to Sh350 more to use the road that links Mlolongo to the Nairobi-Nakuru highway.

Motorists using the road via Jomo Kenyatta International Airport (JKIA) will pay between Sh120 and Sh1,800, which have been hiked from the previous rates of between Sh100 and Sh1,550.

The State argues that it revised the charges upwards to cushion the Chinese investor funding the road against exchange losses following the shilling’s record low weakening against the dollar.

The revised rates are based on the dollar trading as at last December which was Sh113.14 up from Sh103.79 in the same period in 2020.

“The Base Toll Rates may be adjusted as per the Consumer Price Index and Exchange Rate on and after the commercial operation date. The Exchange rate of USD to Ksh on the 31st December 2021 rose to Sh113.14,” said Transport CS James Macharia.

The review of the toll charges will cushion Moja Expressway (the Chinese firm operating the road) from exchange rate but also depending on the size of the cars and distance covered.

Kenyan Shilling hit lows against the dollar last year after reopening of the economy which had been ravaged by the Covid-19 pandemic which induced night curfews and closure of businesses leading to increased demand for goods and later translated to higher dollar demand from importers.

Experts are also warning that those holding dollars are reluctant to loosen their positions out of concern about further depreciation, constraining the greenback supply that might ease pressure on Kenyan Shilling.

When the shilling is weak, costs of all payments increase and is denominated in dollars due to the need for more units of the local currency to exchange for the hard currencies which are used in the international markets.

Transit lorries will pay between Sh600 and Sh1,800 to use the expressway, while low-capacity vehicles like saloon cars will pay between Sh120 and Sh360 depending on the distance travelled.

Nairobi Expressway was launched in October 2020 as part of the government’s plans to reduce traffic on Mombasa Road which is usually heavy between Mlolongo and the city centre.

The road is said to be privately-funded and Moja Expressway— a subsidiary of China Road and Bridge Construction (CRBC) will operate it for 27 years to recover its money before ceding it to the Kenyan government.

Moja Expressway will also be at liberty to increase base toll rates annually based on the inflation rate with the fees projected to earn the company Sh302.5 billion in revenues every year.

The new rates are being set barely a month since the parliament endorsed proposed regulations to establish a fund where monies from toll highways will be kept.

The Public Finance Management (National Road Toll Fund) Regulations 2021 will establish the National Roads Toll Fund, seeking to implement the Public Roads Toll Act, Cap 407, which guides the imposition of toll fees on major national roads.

Motorists using Nairobi-Nakuru, Nairobi-Mombasa, Nairobi-Thika and Nairobi’s Southern Bypass will also pay toll charges.


Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]
Tags: CS James MachariaMoja ExpresswayNairobi ExpresswayToll fee
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