Kenyans Enraged as Government Pays Sh4.09 Billion to Kill Northern Road Deal
In a move that has sparked widespread public outcry, the Kenyan government has officially sanctioned a staggering Sh4.09 billion payout to terminate a major road project in Northern Kenya. The 143-kilometre road, intended to connect Modogashe, Habasweini, Samatar, Rhamu, and Mandera, was originally part of the ambitious 2014 Roads Annuity Programme. However, after a decade of stagnation, a recent review deemed the project “unaffordable,” leading the Kenya National Highways Authority (KeNHA) to approve the massive compensation package on November 12, 2025, to avert potential legal battles from investors.
This payout brings the total termination costs under the failing Annuity Programme to a whopping Sh4.53 billion, a figure that many critics argue could have funded several hospitals or smaller essential road networks. While the government maintains that cancelling the contract was necessary to shift toward more sustainable financing—such as World Bank credits—the sheer scale of paying billions for a project that never saw a single bag of cement poured has left a bitter taste in the mouths of Kenyans grappling with high taxes and a rising cost of living.
President Ruto has attempted to calm the storm by promising that progress on the broader Isiolo-Mandera highway—now bolstered by World Bank funding secured in March 2026—will be visible by 2027. Despite these assurances, the online reaction has been nothing short of explosive. Kenyans on X (formerly Twitter) have been quick to point out the perceived absurdity of “paying contractors to go away” while the region’s infrastructure remains in shambles.
The news of the payout triggered a wave of viral reactions, with many users questioning the integrity of the original contracts and the accountability of the officials involved:
Kones (@BCherich): “Remember ndio Barbara itoke Rhamu iende Mandera gimmick? Taxpayers paid investors Sh4.09 billion in termination costs for the construction of the Modogashe-Habasweini-Samatar/Rhamu-Mandera road project.”
SANKEI (@SankeiSaitoti): “Sometimes I think the contractors are just proxies of these politicians.”
Uncle Wa Harrier™ (@Xtrapressure_): “So they are paying because they got back in the sitting room and said ‘Let’s not build this road, let’s pay the contractors to fuck off’. Imagine being paid for doing nothing.”
Henix Obuchunju (@Obuchunju): “Investors and contractors pocketed about Sh4 billion from a stalled roads deal meant to build and maintain the Garissa, Wajir and Mandera highway after govt cancelled the plan and changed the project model.”
As the government pivots to the Horn of Africa Gateway Development Project, the shadow of the failed Annuity Model looms large. For the residents of Mandera and Wajir, the wait for a modern bitumen road continues, now with the added sting of knowing that billions of their tax shillings were used to buy silence rather than stones and tar.