France loses €1.3B Kenya infrastructure deal to China as Beijing expands influence in Africa
France has suffered another setback in Africa as Kenya moves to terminate a €1.3 billion highway expansion deal with a French-led consortium.
- Kenya is terminating a €1.3 billion highway expansion deal with a French-led consortium
- The contract is expected to be reassigned to a Chinese firm, reflecting China’s increasing influence in African infrastructure development
- France’s waning influence in Africa is reflected in the collapse of the deal and the shift in alliances of African nations toward China and Russia
The Kenyan government’s decision to halt the project, originally led by a France-based firm, has paved the way for a China-backed contractor to take over.
The decision underscores shifting political and economic alliances on the continent, where a growing number of countries are distancing themselves from former colonial powers and turning toward China for strategic partnerships.
The project, which aims to upgrade 140 kilometers (87 miles) of single-lane roadway into a multi-lane highway linking Nairobi to the Rift Valley city of Nakuru, was originally signed in Paris in 2020 during a state visit by then-President Uhuru Kenyatta.
The deal had been awarded to a consortium led by France’s Vinci Highways, with participation from Vinci Concessions and the French private equity firm Meridiam SAS.
According to government officials and sources familiar with the matter, the contract will likely be reassigned to a Chinese firm—a development exclusively reported by Reuters—highlighting China’s deepening footprint in African infrastructure and France’s waning influence in the region.
Kenya’s decision followed a government review of the contract terms, which officials deemed unfavorable.
The Kenya National Highways Authority (KeNHA) noted that the original agreement placed the financial risk of low traffic volumes squarely on the government.
“KeNHA requested a restructuring of the contract… but the proposal was considered unbankable, thus creating a stalemate,” the agency told Reuters.
The collapse of the deal adds to a growing list of setbacks for France in Africa and reinforces a broader trend in which African nations are reassessing legacy relationships in favor of new, pragmatic alignments that prioritize infrastructure, financing, and sovereignty.
France waning influence in Africa
France’s waning influence in Africa has become increasingly apparent in recent years, as a growing number of countries on the continent rethink their historical ties with Paris in favor of new alliances, particularly with China and Russia.
Once seen as a dominant political, military, and economic force across Francophone Africa, France now finds itself on the defensive as governments question its legacy, its presence, and its role in current development trajectories.
A combination of factors is driving this shift.
Rising anti-French sentiment, particularly in West Africa, has been fueled by perceptions of economic exploitation, political interference, and ineffective military interventions, especially in the Sahel.
In countries like Mali, Burkina Faso, and Niger, recent coups have not only ousted pro-French leaders but also resulted in the expulsion of French troops and diplomats.
At the same time, these states are turning to alternative partners, particularly Russia, for security support, and to China for infrastructure and investment.
The recent collapse of a €1.3 billion French highway deal in Kenya, now likely to be handed to a Chinese contractor, is emblematic of this broader continental pivot.