Transport Cabinet Secretary Kipchumba Murkomen has explained a binding agreement signed by former President Uhuru Kenyatta's administration that has led to an increase in the Nairobi Expressway charges.
In a detailed statement dated Monday, January 1, Murkomen stated that the adjustment was due to the depreciation of the Kenya Shilling to the United States dollar since the time of gazettement of the Toll Rates in April 2022.
According to the CS, Uhuru's administration acquired the loan in US Dollars and agreed to repay it according to the current market exchange rate.
However, since 2021 when the deal was sealed, the Kenyan shilling has continued to depreciate forcing the Ministry of Transport to gazette new charges in honour of the agreement.
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"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 is already embedded in the agreement taking into account the loan facility by the investor which was borrowed using USD," Murkomen stated.
"The Cabinet Secretary and the government of Kenya have no discretion but to follow the agreement as established in 2021," he added.
The CS indicated that the situation would have been worse if Uhuru's administration had given the traffic volume guarantee to the Chinese financiers.
"The good thing about Expressway is first that the government of Kenya did not give traffic volume guarantee otherwise the taxpayer would now be paying a lot from the interest accrued and inflation plus the difference unmet by less traffic flow."
In the new gazetted charges, motorists moving from Mlolongo to Westlands will pay Ksh500, instead of the previous Ksh360. A trip from Mlolongo to Southern Bypass will cost Ksh330 and not Ksh240, while to Capital Center will cost Ksh410 and not Ksh300.
From SGR to Eastern Bypass, motorists will be charged Ksh170, while to Southern Bypass, it will be tolled at Ksh250. From SGR to Capital Centre and Haile Selassie will be charged a flat rate of Ksh330.
Exits at Museum Hill, The Mall and Nairobi Westland's terminus will attract Ksh500 rate up from Ksh310. The shorter routes from Syokimau to the SGR station and those from SGR and the JKIA stations to the Eastern Bypass will cost motorists Ksh170 up from Ksh100.