Home Economy Motorists to pay China firm in dollars for expressway use

Motorists to pay China firm in dollars for expressway use

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The East African Business Mirror
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The ongoing construction of Nairobi Expressway to the Jomo Kenyatta International Airport, along Mombasa Road in this picture taken on November 8, 2020. PHOTO | DENNIS ONSONGO | NMG

The State has opened a window allowing a Chinese company to adjust the Nairobi Expressway toll charges annually based on inflation in fees that will be paid in dollars.

In a gazette notice published last Thursday, Transport secretary James Macharia said the concessionaire, Moja Expressway, a subsidiary of China Road and Bridge Construction (CRBC), will be at liberty to review the set base toll rates (BRT).

Motorists using the road linking Mlolongo to the Nairobi-Nakuru highway via Jomo Kenyatta International Airport (JKIA) will pay between Sh100 and Sh1,550, depending on the size of the cars and distance travelled.

The rates are based on the dollar trading at Sh103.79 and will be reviewed based on inflation and the rate of Kenya shilling to the dollar, which currently stands at Sh109.17.

This means that the toll charges are dollar-based and will cushion the Chinese operator from exchange rate losses.

The Chinese firm, which will build and operate the Nairobi Expressway, is expected to earn an estimated Sh106.8 billion profit for the 27 years it will own the double-decker road.

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