Nairobi expressway users are set to pay up to kes 350 more after the government reviewed the toll charges to match the strengthening of the dollar in the past year.
Motorists using the road that links Mlolongo to the Nairobi-Nakuru highway via Jomo Kenyatta International Airport (JKIA) were to pay between kes 100 and kes 1,550 while using the road however, they are now set to pay between kes 120 and kes 1,800 in the new review.
“The Base Toll Rates may be adjusted as per the Consumer Price Index and Exchange Rate on and after the commercial operation date. The Exchange rate of USD to Ksh on the 31st December 2021 rose to kes 113.14,” reads the notice published by Transport Secretary James Macharia as quoted by Business Daily.
The review of the toll charges is meant to cushion Moja Expressway – the Chinese firm operating the road – from exchange rate also depending on the size of the cars and distance travelled.
The shilling has been on a losing streak against the dollar since the re-opening of the economy in January. Currently, the shilling has been hovering towards 115 units to the globally bullish dollar.
The shilling has depreciated 1.47 per cent since the beginning of the year, but analysts expect worse in coming months due to expenditure on materials for the August poll and runaway oil prices.
“Looking ahead, the currency is set to continue losing ground against the USD on the back of election-related uncertainty, a wide current account deficit and eroded foreign exchange reserves,” analysts at Barcelona-based FocusEconomics.
The Nairobi Expressway was launched in October 2020 as part of the government’s ambitious plans to reduce heavy traffic on Mombasa Road which usually starts from Mlolongo to the city centre.
The road is privately-funded and Moja Expressway— a subsidiary of China Road and Bridge Construction (CRBC) will operate it for 27 years to recover its money before ceding the road to the State.
The firm will be at liberty to review the base toll rates annually based on the inflation rate with the fees projected to earn the company kes 302.5 billion in revenues every year
