The State will be required to cater for the loses and damages accrued by foreign firms through the government's premature termination of projects undertaken under the PPP model.
The PPP act was endorsed by the former Head of State His Excellency Emilio Mwai Kibaki. He purportedly meant to ensure that the State constantly financed the construction of it's infrastructure without raising the debt ceiling of the Nation.
The Treasury's revelations on seven projects that are ready for utilization and under construction unearthed that the State risks facing a fine of more than Kshs 1.5 Billions due to it's failure to abide by the terms of the contract.
The Nairobi Expressway was one of the project. The government allegedly requested investors to recover their invention money from charging toll fees on the roads for a period of up to 30 years.
A parliamentary advisory disputed the deal claiming that the move could have led to a civil unrest. Earlier, investors failed to recover their funds from users of the Thika Super Highway following a protest from the public.
Uhuru's government was further forced to raise the nation's debt ceiling from around Kshs 1.8 Trillion to Kshs 8 Trillion over a period of 9 years. Borrowed cash was purportedly used to facility sustainable development of the Kenyan infrastructure.
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