Kipchumba Murkomen has explained to disgruntled citizens in Nairobi, Kenya why there has to be an increment to the charges for the express highway. In his explanation, he mostly blamed the new dollar rate exchange which has significantly gone up.
The increase in the Nairobi Expressway toll fee was linke, to an adjustment in the project agreement with the Chinese government. Murkomen explained that the depreciation of the Kenya Shilling was taken into consideration, affecting the toll rates since their gazettement in April 2022.
He mentioned that no review had been conducted on the toll rates despite the currency facing challenges due to global inflation. Murkomen clarified that the calculation for the new rates was already outlined in the agreement, factoring in a loan facility borrowed in USD.
Contrary to reports suggesting a 50% increase, Murkomen clarified that the actual rise was 38.9%, correlating with the dollar’s surge against the shilling. He provided calculations to support this, indicating that the increase was proportional to the exchange rate shift.
Highlighting the significance of the established agreements, Murkomen emphasized that the Kenya Kwanza Alliance was bound by the contractual terms set in 2021. He mentioned the fortunate absence of a traffic volume guarantee by the government, which, if present, could have considerably burdened taxpayers due to interest accrual, inflation, and decreased traffic flow.
The unveiling of the new toll charges, revealed in a Gazette Notice dated December 19, 2023, and authorized by Cabinet Secretary Murkomen, stirred discontent among users during challenging economic times.