Runaway costs trigger shake-up of KeNHA contract price formula

Kenol-Marua highway

Dualling of the Kenol-Marua highway near Karatina town. 

Photo credit: Joseph Kanyi | Nation Media Group

The Kenya National Highways Authority (KeNHA) is set to revise the formula used to adjust prices for inflation on its contracted projects amid a worrying trend of billions of shillings in runaway costs that have burst budgets, leaving a trail of delayed and incomplete ventures.

The State agency has revealed that it plans to review the variation of price (VOP) formula for all its contracts to limit the rising cases of extreme changes to original project budgets.

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