The Kenya National Highways Authority (KeNHA) has formally announced the outcome of negotiations and evaluations conducted for the proposed Public Private Partnership (PPP) development of the Nairobi–Nakuru–Mau Summit (A8) Road and the Nairobi–Maai Mahiu–Naivasha (A8 South) Road.

The announcement follows months of stalled talks, revised proposals, and a legal review of all submissions under the PPP Act, Cap 430.

According to KeNHA, the process began after the Authority received two Privately Initiated Proposals from Shandong Hi-Speed Road and Bridge International Engineering Co., Ltd (SDRBI) and a consortium comprising the China Road and Bridge Corporation (CRBC) and the National Social Security Fund (NSSF).

“Both proposals were evaluated for the design, build, finance, operate, maintain, and transfer model,” KeNHA stated, noting that the PIPs covered 175km of the A8 Road and 58km of the A8 South section.

KeNHA said the project traverses Kiambu, Nyandarua, and Nakuru counties, adding that both proponents submitted feasibility studies for a full-corridor option and an alternative split-corridor option on 15 September 2025.

“The alternative proposals were designed to anticipate investment approval delays for Chinese State-Owned Enterprises,” the Authority explained.

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Evaluation of Proposals and Failed Negotiations

Following the submissions, KeNHA conducted an internal evaluation in line with Section 43 of the PPP Act.

The Authority said the full-corridor proposal was assessed first, resulting in CRBC–NSSF emerging as the preferred proponent and SDRBI as the reserve proponent.

“This ranking was confirmed by the PPP Committee on 9 October 2025,” the disclosure noted.

However, negotiations hit a dead end after CRBC informed KeNHA that its internal investment ceiling under Chinese outbound investment rules capped participation at USD 1 billion.

“This limitation meant the preferred proponent could not undertake the entire corridor within the required timelines,” KeNHA said, adding that the change constituted a “material alteration prohibited under Section 57(3)” of the PPP Act.

The Authority said SDRBI, the reserve proponent, also expressed an inability to implement the full-corridor option due to the same investment cap.

“With both proponents unable to deliver the entire scope, the Contracting Authority initiated evaluation of the earlier split-corridor feasibility reports,” it stated.

PPP Committee Approvals and Fresh Opportunity for Competitors

On 10 November 2025, during its 48th Extraordinary Meeting, the PPP Committee endorsed the split-corridor recommendations.

“The Committee determined that the project meets public interest and PPP suitability criteria,” the National Treasury conveyed.

Under the approved structure, the CRBC–NSSF consortium will implement the Nairobi–Naivasha–Gilgil (A8) section and the Nairobi–Maai Mahiu–Naivasha (A8 South) section—covering roughly 81km.

SDRBI will undertake the Gilgil–Mau Summit section totalling 94km, with both assignments subject to technical, financial, environmental, social and legal conditions listed in the evaluation reports.

In a move to promote openness, KeNHA issued a call for other qualified private parties to submit competing PIPs.

“This disclosure aligns with the 24 April 2025 circular on public transparency,” the Authority noted, encouraging interested investors to comply with the PPP Act and related regulations.

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Next Steps and Public Disclosure Commitment

KeNHA said it will now begin negotiations with each proponent for their respective sections under Section 57 of the PPP Act.

“The process will culminate in the signing of Project Agreements and the commencement of works,” it affirmed.

The Authority stressed that the disclosure complies with Section 43(4) of the PPP Act.

“KeNHA remains committed to strict adherence to the law and to ensuring transparency in delivering critical national infrastructure,” it said, adding that further details are available on its official website.

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A Notice by KeNHA Clearing Split PPP Plan for Major Highways. PHOTO/ KeNHA