Building the city expressway will cost the CRBC approximately $599.5 million, which is Kshs 65.5 billion. To recover their investment, the firm will earn Kshs 106 billion, which is 163%. This information is from the disclosures presented to the Parliament.
The expressway is being constructed through a public-private partnership model, where private investors fund the government project. The procured private company designs, finances, builds, operates, maintains, and hands over the government’s property after the agreed period expires.
The company, China Road and Bridge Corporation (CRBC), is expected to run the expressway for 27 years, during which it should recover the funds it’s using to finance the project.
The mega road, connecting Mlolongo to Nairobi-Nakuru highway, upon completion, is expected to earn a total of $2,765 million or Kshs 302.4 billion in revenues from the toll fees collections. Each year the China company, through its subsidiary, Moja Expressway, will be pocketing Kshs 3.9 billion.
All high-capacity vehicles will be paying between $5 and $15, which is Kshs 547 and $1,641, respectively. Low capacity vehicles will be paying between $1 and $3, which is between Kshs 109.4 and Kshs 328, respectively. The amount paid will be determined based on the distance the vehicles have traveled on the road.