Exit lane: Sudden top exits at road agencies expose power struggles

Kenya’s road sector has been thrown into confusion after the twin resignations of the bosses of key agencies, even as the National Treasury abandoned plans for the construction of the Nairobi-Mombasa Expressway.

Kenya National Highways Authority (Kenha) Director-General (DG) Kungu Ndungu quit his job on Friday. On the same day, the director general of Kenya Rural Roads Authority (Kerra) Philemon Kandie, also resigned and said he would continue on leave starting Monday. 

There was also speculation that their counterpart at Kenya Urban Roads Authority (Kura) boss Silas Kinoti, had also proceeded on terminal leave but Kura has since clarified that the Director-General is still in office. 

To further fan the crisis, two weeks ago, the National Treasury rejected a feasibility study by the firm planning to build the Sh468 billion expressway between Nairobi and Mombasa, a major setback for the project that was expected to half travel time between the two cities.

Additionally, there has been a push to disband Kura and Kerra, with arguments that their mandate ended at the onset of devolution, with the constitution recognising national and county road networks.

The push has been more pronounced in the fight by counties to get a bigger share of funds collected from motorists through the Road Maintenance Levy as well as differentiation between county and rural roads, the latter managed by Kerra.

Outgoing Kenha boss Ndung’u was appointed Director-General in October 2021, succeeding Peter Mundinia. His first three-year term at the helm ended in October 2024 and his contract was renewed for another three years.

“The board of directors hereby announces the acceptance of the resignation of Eng Kungu Ndung’u as Director General of Kenha effective July 11, 2025 (and) the appointment of Eng Luka Kimeli as acting Director General effective July 11,” said Kenha Chairman Winfrida Ngumi. 

An insider said that in both Ndungu’s and Kandie’s cases, it was an issue of appointments following the politics of the day, a pointer that the two were deemed not to be following Kenya Kwanza’s script and that the positions could be filled by President William Ruto’s allies. 

The source added that the board of Kenha is expected to meet in the coming days to deliberate on the process of recruiting a substantive director general, who the law requires to be an engineer with 15 years experience in highway and road engineering.

The tenures of both Ndung’u and Kandie have been marked by reduced funding to the road sector, with the government now seeking to bridge the funding gap through alternative funding models such as public private partnerships.

These alternatives are, however, yet to take root on account of factors such as bureaucratic red tape but also ills such as corruption.  

It was during Ndung’u’s tenure that the Nairobi Expressway was commissioned. The 27 kilometre road from Mlolongo to Westlands, which is seen as a model Public-Private Partnership (PPP) project, started earlier in 2019. 

Despite the expressway being hailed as a success but also amidst protests of increases in toll charges, Kenha has struggled to bring to fruition other similar projects.

Like his predecessor, Ndung’u failed to get other PPP road projects going, including Nairobi-Mombasa Expressway and the Rironi-Mau Summit roads, which have been in the making for years but have always suffered major setbacks, sending Kenha and the private sector proponents back to the drawing board.

Days to his resignation, the proposed four-lane Nairobi-Mombasa Expressway suffered such a setback as the PPP Directorate rejected its project development report. 

“The Project Development Report was finalised and submitted for approval. On July 2, 2025, it was determined that the PDR did not meet the relevant criteria and should be abandoned… the proposal can be resubmitted to the Committee for a fresh determination,” said the PPP Directorate in a report.

American firm Everstrong Capital is the project proponent and has been talking to local investors, particularly institutions including insurers, banks and pension funds, looking to raise capital locally but also shopping for international funders.

Everstrong Capital has strong backers in its quest to build what is now referred to as Usahihi including former US ambassador to Kenya Kyle McCarter. 

The firm on Friday denied that Treasury had rejected its feasibility studies and instead noted this is still undergoing review.

“The feasibility studies are still undergoing review by Kenha, the PPP Directorate and the National Treasury,” said the firm in a statement.

“We have also observed with concern a recent statement circulating in the public domain. We wish to clearly state the information shared is inaccurate and does not represent the true status or progress of the project.”

The other major project that is expected to adopt a similar PPP model but has faced challenges is the Rironi-Mau Summit. During the Jubilee Administration, a French consortium, Rift Valley Highway Ltd, had been awarded the 30 year deal to upgrade the road into a four lane highway then operate and maintain for 30 years, during which it would charge road toll to recover its investments while ploughing some of the money to maintenance of the road.

The contract was, however, cancelled by Kenya Kwanza. This was, however, costly for the taxpayer as the government had to pay Sh6.2 billion to the consortium for cancelling the contract.

Kenha is currently reviewing Privately Initiated Proposals (PIPs) by a consortium of China Road and Bridge Corporation (CRBC) and Kenya’s National Social Security FUnd (NSSF) and another by Shandong Hi Speed Road & Bridge International Engineering Co. Ltd.

At Kerra, Kandie is leaving an agency that is unsure of its future and has been embroiled in flights with counties over the management of some roads as well as the funds that come with the mandate.

Kandie announced his exit at the agency on Friday and said he would start terminal leave on Monday.

“This letter serves as a formal notification of my resignation from the position of Director General at Kenya Rural Roads Authority giving a notice of three months effective July 11, 2025 with my last day of employment being October 10, 2025,”

“I wish to proceed on my 45 days’ annual leave during the period of my notice effective July 14, 2025.” 

Kandie added that he was committed to ensuring a smooth transition. 

Following the resignation, the Kerra Board of Directors appointed Jackson Magondu in an acting capacity.

While the Kenya Roads Act 2007 mandates Kerra to handle rural roads, those classified as D and E as well as unclassified roads, the Constitution mandates counties to manage county roads, with the lines blurred as to the difference between rural and county roads.

This has seen the two fight for funds, including what is allocated to road agencies from the Road Maintenance Levy Fund, a kitty funded by motorists and managed by the Kenya Roads Board. Road Maintenance Levy Fund (RMLF) gets Sh25 per litre of petrol and diesel every time a motorists buys super petrol or diesel.

Kenya Roads Board collects about Sh80 billion per year through RMLF, but this is expected to go up to Sh115 billion, following the increase in the road levy to Sh25 per litre from Sh18.

This is shared between the road agencies which include Kerra (22 per cent) and county governments (15 per cent).