Cabinet unveils new pricing framework to curb infrastructure costs
The Cabinet approved the dualling of the 23.5km Muthaiga-Kiambu-Ndumberi road, expanding the existing two-lane highway into a dual carriageway complete with bypasses, loops, access roads, and non-motorised transport lanes.
The Cabinet on Tuesday approved a series of measures aimed at improving infrastructure development, reducing project costs, and enhancing environmental conservation.
Key decisions include a comprehensive pricing framework for government projects, the dualling of the Muthaiga-Kiambu-Ndumberi road, and the Nairobi National Park-Athi-Kapiti Wildlife Corridor project.
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The Comprehensive Framework for Infrastructure Projects Pricing seeks to curb inflated costs, eliminate irregular and inconsistent practices, and ensure value for money in public investments.
According to a Cabinet statement released on Tuesday, the framework will establish a data-driven system for determining infrastructure costs and will be overseen by the Chief of Staff and Head of the Public Service through a Multi-Agency Technical Working Team.
Milestones already achieved include sectoral pricing models, cost derivation criteria, and proposals for a National Infrastructure Pricing Database (NIPD). The system will adopt the First Principles Approach (FPA), successfully applied in the United Kingdom, Australia, and Singapore, which could reduce project cost overruns by up to 25 per cent.
The Cabinet also approved the dualling of the 23.5km Muthaiga-Kiambu-Ndumberi road, expanding the existing two-lane highway into a dual carriageway complete with bypasses, loops, access roads, and non-motorised transport lanes.
"The corridor, serving Muthaiga, Runda, Ridgeways, and Kiambu Town, currently experiences chronic traffic congestion, particularly during peak hours," the statement reads in part.
"The dualling is part of the government's broader effort to modernise Nairobi's metropolitan transport network in line with Kenya Vision 2030 and the UN Sustainable Development Goals on infrastructure and mobility."
The Muthaiga–Kiambu–Ndumberi corridor is one of the busiest routes connecting Nairobi’s northern suburbs with Kiambu County, a rapidly growing residential and commercial area.
To further environmental and conservation priorities, the Cabinet approved the Nairobi National Park-Athi-Kapiti Wildlife Corridor to secure critical migratory routes for species such as zebra, wildebeest, and gazelles.
The project will include land acquisition, wildlife-friendly fencing, and overpasses and underpasses for safe animal crossings. Portions of public land, including sections of the Export Processing Zone, will be allocated to the Kenya Wildlife Service.
Scheduled to begin in the 2026/2027 financial year, the three-year project will leverage partnerships with conservation agencies and innovative financing such as nature bonds and debt-for-nature swaps.
"The project will reconnect the park to surrounding conservancies in Machakos and Kajiado counties, restoring vital migratory pathways for species such as zebra, wildebeeste, and gazelles. Implementation will include land acquisition, wildlife-friendly fencing, and the construction of overpasses and underpasses to enable safe animal crossings," the statement reads.
Cabinet noted that these measures align with Vision 2030, the Wildlife Corridors and Dispersal Areas Report (2016), and Kenya’s commitment to sustainable infrastructure and biodiversity conservation.
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