Treasury Advances Dongo Kundu Tolling Proposal

The National Treasury's Public Private Partnership (PPP) Directorate has granted initial approval for a proposal to introduce toll services on the Mombasa Southern Bypass, commonly known as the Dongo Kundu Bypass. This decision, made in September 2025, allows the project to proceed to a feasibility study, marking a significant step towards making the bypass a toll road.

The move could see the Dongo Kundu Bypass become Kenya's second major highway where motorists pay a fee for usage, following the Nairobi Expressway. The government's rationale behind tolling is to ensure the sustainability of the asset, mobilise resources for future infrastructure development, and repay loans that funded the project without further straining the national budget.

Historical Context and Project Overview

The Dongo Kundu Bypass, an 18-kilometre dual carriageway, connects Mombasa Mainland West to Mombasa Mainland South, offering an alternative to the congested Likoni Ferry. The bypass was substantially completed and opened to the public in August 2024, although official commissioning is pending.

The project, also known as the Mombasa Port Area Road Development Project, was implemented in three phases. Phase one, from Miritini to Kipevu, was completed in June 2018 at a cost of KSh 11 billion. Phase two, connecting Mwache Junction to Mteza, cost KSh 24.2 billion and includes the Mwache Bridge (660m) and the Mteza Bridge (1.44km), the latter being the longest over water in East Africa. The third phase, linking Mteza to Kibundani, was also scheduled for completion by 2024.

The total estimated cost of the Dongo Kundu Bypass project is over KSh 39 billion (approximately US$251 million), with 80% funded by the Japan International Cooperation Agency (JICA) through loans and grants, and the remaining 20% by the Kenyan government.

Laws, Policy, and Governance

The proposed tolling of the Dongo Kundu Bypass aligns with the government's broader strategy to implement a National Tolling Policy. This policy, initially proposed in February 2025, aims to create a clear framework for road infrastructure projects under the Public-Private Partnership (PPP) model. The Kenya National Highways Authority (KeNHA) is the contracting authority for the Dongo Kundu tolling project and is expected to conduct a feasibility study and select a private firm through competitive bidding to implement and manage the toll system.

The draft Roads Tolling Policy suggests that tolling could be introduced on newly constructed roads, improved roads, those of higher quality than untolled roads, and where deemed necessary by the government in line with the law. It also proposes that roads with tolls may not be required to have a dedicated toll-free alternative route, a point that has raised concerns.

Stakeholders and Testimonies

The announcement of the tolling plan has elicited mixed reactions. While the government views it as a crucial step for financial sustainability and further infrastructure development, some local leaders have voiced strong opposition. Nominated Senator Raphael Chimera and Matuga MP Kasim Sawa Tandaza have criticised the plan, arguing it would impose an additional financial burden on ordinary Kenyans and could deter people from using the bypass, thereby undermining its intended benefits.

The Dongo Kundu Bypass is seen as a game-changer for Kwale County and the national economy, providing an alternative route to the South Coast and easing congestion at the Likoni ferry channel. It is also expected to boost tourism and businesses, and enhance economic prospects in the area.

Evidence and Data

Risks and Implications

The introduction of tolls on the Dongo Kundu Bypass carries several implications. Economically, it could provide a sustainable revenue stream for road maintenance and future infrastructure projects, reducing reliance on direct government funding and external loans. However, there is a risk that toll charges could increase transport costs for businesses and individuals, potentially impacting the cost of goods and services in the coastal region.

Socially, concerns have been raised about accessibility and inclusivity, particularly if alternative toll-free routes are not adequately provided or maintained. The government has stated that toll charges will be determined based on project cost, user survey data, and the projected impact on different vehicle types, with quarterly reviews.

Unknowns and Controversies

Key uncertainties remain regarding the specific toll rates for the Dongo Kundu Bypass and the timeline for their implementation. The feasibility study will be crucial in determining these details. The absence of a mandatory dedicated toll-free alternative route, as suggested in the draft policy, is a point of contention that could lead to further public debate and legal challenges.

The Dongo Kundu Special Economic Zone (SEZ), which the bypass is intended to serve, is also a significant development. The SEZ, spanning 3,000 acres, aims to become a multi-sectoral hub with a free port, industrial parks, and logistics facilities. While the SEZ is expected to attract substantial investment and create jobs, its full operationalisation and the extent to which tolling the bypass will impact its attractiveness to investors are still unfolding.

Timeline and Next Steps

Following the September 2025 approval, the Kenya National Highways Authority (KeNHA) is expected to commence a detailed feasibility study for the tolling plan. This study will inform the procurement process for a private operator to install the necessary tolling infrastructure and manage the road's operation and maintenance.

What to Watch

Stakeholders will be closely watching the outcomes of the feasibility study and the public engagement process surrounding the proposed toll rates and the provision of alternative routes. The implementation of the National Tolling Policy across other major Kenyan roads, including the Thika Superhighway and the Nairobi Southern Bypass, will also provide insights into the government's long-term strategy for infrastructure funding.

Related Stories

• Nairobi Expressway: Kenya's first toll road and its impact on urban mobility.
• Development of the Dongo Kundu Special Economic Zone and its potential for regional economic transformation.
• Public-Private Partnerships in Kenya's infrastructure development.