National Treasury and Economic Planning Cabinet Secretary John Mbadi has refuted claims by former Deputy President Rigathi Gachagua that the current administration illegally inflated the cost of the Rironi-Mau Summit Highway from Ksh150 billion to Ksh200 billion. Mbadi argued that Gachagua's comparison was misleading as it ignored significant changes to the highway's design and commercial risks associated with the previous contract.
Mbadi explained that the earlier Ksh150 billion figure corresponded to the initial design under the contract with a French firm, which the current administration subsequently terminated. He highlighted that the revised design incorporated additional lanes, an expansion not included in the original plan. This change, he stated, was a key factor in the project's revised cost.
The Treasury CS defended the government's decision to terminate the previous contract, citing its financing structure that exposed the country to unacceptable commercial risks. Mbadi emphasized that the government could not proceed with an arrangement that transferred excessive financial exposure to the borrower, stressing the need to shield the economy from such risks.
Mbadi took issue with Gachagua's public statements, accusing him of making claims without establishing the facts. He warned that such remarks could mislead Kenyans who may not have access to the project's details. Mbadi expressed concern about the impact of misinformation on the public, arguing that political leaders have a responsibility to verify information before presenting it as fact.
Mbadi clarified his decision to respond to Gachagua's allegations rather than ignore them. He stated that remaining silent in the face of misleading claims could allow false narratives to gain wider acceptance. The CS emphasized the importance of correcting misinformation to prevent confusion among the public.
Gachagua had also accused the government of illegally allocating Ksh30 billion from the National Social Security Fund (NSSF) to the project. However, Mbadi did not directly address this claim in his response. The Treasury CS focused on debunking the allegations related to the project's cost inflation and the termination of the previous contract.
The Rironi-Mau Summit Highway project has been a subject of controversy, with various stakeholders raising concerns about its cost and implementation. Mbadi's response aims to provide clarity on the project's status and the government's decision-making process. The issue remains a topic of interest for Kenyans, who are keenly following the project's developments.
Key points
- Treasury CS John Mbadi refutes claims of cost inflation in the Rironi-Mau Summit Highway project.
- Mbadi attributes the revised project cost to changes in the highway's design and commercial risks.
- The government terminated the previous contract due to unacceptable commercial risks.
