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Treasury eyes Sh42bn toll deals for Nairobi, Mombasa bypasses

Africa News News African October 25, 2026 · Comments off

The National Treasury eyes Sh42.26 billion toll deals for two major bypass roads in Nairobi and Mombasa under concession terms.

Disclosures show that the Nairobi Southern Bypass, which is complete and in use, is earmarked for a Sh12.265 billion operations, maintenance and tolling concession, while the planned Mombasa Northern Bypass has a proposed investment value of Sh30 billion under a ‘user- tolls; viability gap funding (VGF) financed’ model.

The ‘user-pay: tolls’ model for the Southern Bypass means that instead of using general taxpayer money to fund a project, only the motorists or citizens who actually utilise the infrastructure pay for its operations, maintenance and tolling concessions.

In the case of the planned Mombasa Northern Bypass project, the ‘user tolls: VGF’ model means that the construction costs would be split between government grants and private funding, and the private investors would later recover their money directly by charging the public a fee (toll) to use it.

The Treasury said a proposal by the Kenya National Highways Authority(KeNHA) to introduce tolls on the Southern Bypass is awaiting approval.

The 28.6-kilometre Southern Bypass links Nairobi and Kiambu counties through Langata and Kikuyu suburbs.

Mombasa Northern Bypass is a planned 38.6-kilometre road infrastructure project by KeNHA, which is aimed at easing traffic congestion and improving freight movement in Mombasa County.

The road project will have two sections, including the main Mombasa Northern Bypass (27.1 km), which connects the Mombasa–Nairobi Highway (A8) at Miritini to the Mombasa–Malindi Road (A7) at Kwa Kadzengo, Mtwapa.

The second component, known as Bamburi Link Road (11.5 km), links the new bypass to the Mombasa–Malindi Road (A7) at Bamburi.

The proposed concessions would add to the toll-road user charges on the 27-kilometre Nairobi Expressway, where motorists pay between Sh170 and Sh500 depending on the distance travelled and vehicle category.

The government is also pursuing tolling proposals for other major roads, including the Dongo Kundu Bypass in Mombasa, as it seeks to recover infrastructure costs, sustain completed assets and mobilise resources for new projects.

Treasury has also estimated a road infrastructure funding deficit of Sh1.5 trillion over five years and Sh4 trillion over a decade.

The government published a draft tolling policy in March 2026 as it sought to establish a framework for collecting road-user charges to supplement the existing financing mechanisms, including the Roads Maintenance Levy Fund, which is funded through a Sh25 charge on every litre of petrol and diesel.

Besides the Southern Bypass, Nairobi also hosts the 21km Nairobi Northern Bypass highway that serves as a ring road around Nairobi, connecting Ruaka on Limuru Road to Ruiru on Thika Road and the Eastern Bypass.

The Nairobi Northern Bypass traverses areas such as Runda, with an overpass spanning Kiambu Road, Thome Estate, Kahawa West, Githurai, and Ngumba Estate before reaching its eastern terminus.

The city also has the Western Bypass, which is a four-lane dual carriageway that connects the Nairobi Southern Bypass at Gitaru to the Northern Bypass at Ruaka. It passes through major hubs like Wangige, Kihara, and Ndenderu, serving as the final ring road to decongest Nairobi.

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