Chinese Ambassador to Kenya, Zhang Ming, has refuted claims that his government had scaled down the amount of money it promised to fund the upgrading of Mombasa Road from Jomo Kenyatta International Airport to Gigiri.

Speaking after a courtesy call to Nation Media Group, Mr Ming said that contractors on the ground experienced some difficulties in the original plan after huge deposits of black cotton soil were discovered along the excavation route.

"As a result of the development, there were necessary changes in design of the road and difficulties in implementing contractor demands. But we are keen on completing the road even sooner," said Mr Ming. The construction of the 22 kilometre highway was to be fully financed by the Chinese government under a deal struck between President Kibaki and President Hu Jintao.

Reports from the Ministry of Roads and Public Works had earlier indicated that the Chinese government, which had initially pledged to provide Sh5.3 billion for the project had cut the sum to Sh2.2 billion.

The contractor, Shengli Engineering & Consulting Company of China, moved to the site at the beginning of April after a raft of agreements between the company and Ministry of Roads and Public Works.

Once complete, the project is expected to improve traffic flow in Nairobi with the removal of five roundabouts on Uhuru Highway, which will be replaced with flyovers and underpasses. Roundabouts have been blamed for the traffic jams.

Motoring experts estimate that the snarl-ups cost the Kenyan economy up to about Sh300 million per day in wasted man hours, wear and tear and high fuel costs.

Mr Ming said another Chinese company is negotiating with the government on the design and construction of the by-passes to ease traffic flow in the city centre.

He also said his government has put in place a number of measures to stem counterfeit products entering the Kenyan market.

"The details of the by-passes would be made public once the talks are complete while we are taking all measures to stem counterfeit goods manufacture and importation," he said.