Fresh details have emerged showing how the National Treasury quietly released nearly Sh7 billion to compensate French contractors after the collapse of the Nairobi-Nakuru-Mau Summit highway expansion project, raising fresh concerns about transparency and accountability in government spending.
The project, which was valued at more than Sh190 billion, had been awarded to a French-led consortium involving Vinci Highways SAS and other international firms.
It was expected to improve one of Kenya’s busiest transport corridors through a toll-road system designed to ease movement between Nairobi and western Kenya.
The road project was seen as a major infrastructure plan that would reduce traffic congestion, improve trade, and support economic growth.
However, the government later changed direction and showed interest in working with Chinese contractors instead, leading to tension with the French investors who had already secured the deal.
Reports indicate that Treasury officials became concerned that the French firms would take legal action against Kenya at the London Court of International Arbitration.
Such a case could have exposed the country to even larger financial penalties and legal costs, putting more pressure on taxpayers.
There were also fears that a legal dispute could harm Kenya’s diplomatic relations with France at a sensitive time when President William Ruto was also seeking stronger partnerships with Beijing for alternative infrastructure funding and development projects.
To avoid a lengthy legal battle, the government is said to have approved a compensation package of about Sh6.2 billion. However, later reports suggested that the total payout may have gone beyond Sh7.3 billion, creating confusion over the exact amount that was eventually paid to the firms.
The conflicting figures have now raised serious questions about whether Parliament and other oversight bodies were fully informed before the money was released. Critics say such large payments should not be handled quietly without proper public disclosure.
Economists and governance experts argue that the matter reflects a wider problem in the handling of major government contracts, especially those involving foreign investors and large infrastructure projects.
They warn that secret settlements increase the financial burden on taxpayers and weaken public trust in how national resources are managed.
The issue is now expected to increase pressure on Treasury officials to explain how the funds were approved, who gave the final authorisation, and whether all legal and parliamentary procedures were followed before billions of shillings were paid out to the foreign contractors.