PREMIUM State to pocket 60pc of excess profits from Rironi–Mau toll road Business Just now Listen

The government will receive 60 percent of excess profits from the Rironi–Mau Summit toll road in a move aimed at limiting the Chinese firm’s potential for excessive earnings during the 30-year concession period.

Nairobi Expressway has not made a profit since its launch, with operational costs always exceeding toll revenues, but this will not affect the pre-agreed 27-30 year concession period, as per the demand-risk model.

The National Treasury has revealed the owners of the road will transfer to the State 60 percent of earnings above the agreed 16 percent of the internal rate of return (IRR) on equity, according to Treasury documents seen by the Sunday Nation.