France Faces Setback as Kenya Moves to China for €1.3B Highway Project

Kenya has terminated a €1.3 billion highway expansion deal with a French-led consortium, paving the way for a Chinese-backed contractor to take over the project.

The decision marks a significant shift in Kenya’s political and economic alignment, reflecting the broader trend across Africa where nations are increasingly distancing themselves from former colonial powers in favor of strategic partnerships with China.

The project, initially awarded to a consortium led by France’s Vinci Highways, was designed to upgrade 140 kilometers (87 miles) of single-lane roadway into a multi-lane highway linking Nairobi to Nakuru in the Rift Valley.

Signed in 2020 during a state visit by former President Uhuru Kenyatta, the contract had seen participation from Vinci Concessions and French private equity firm Meridiam SAS.

However, after a review, Kenyan government officials concluded that the original terms were unfavorable, with the financial risks of low traffic volumes falling solely on the government.

The Kenya National Highways Authority (KeNHA) sought to restructure the contract, but the proposal was deemed unbankable, leading to a deadlock.

“KeNHA requested a restructuring of the contract… but the proposal was considered unbankable, thus creating a stalemate,” the agency told Reuters.

This marks the latest in a series of setbacks for France in Africa, underscoring China’s growing influence across the continent.

The shift also highlights the changing dynamics in African countries’ approach to development, where infrastructure projects, financing, and sovereignty are increasingly prioritized.

Kenya’s move to reassess its partnership with France is emblematic of a larger trend, with African nations seeking new alliances and moving away from legacy relationships with former colonial powers.

As French influence wanes, particularly in countries like Mali, Burkina Faso, and Niger, anti-French sentiment has been rising, fueled by perceptions of economic exploitation and ineffective military interventions in the Sahel.

In response, several African nations have turned to Russia for security support and China for infrastructure investments, a shift that is further evidenced by Kenya’s termination of the highway project.

The eventual reassignment of the contract to a Chinese firm signals the deepening of Beijing’s footprint in African infrastructure development and the diminishing presence of France in the region.

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