The financing of Kenya’s $3.5 billion Usahihi Expressway has taken a major step forward, with JP Morgan and Standard NBank joining forces to back the project.
Everstrong Capital, a US-based infrastructure investment firm, confirmed the funding arrangement during a stakeholder engagement on the National Tolling Policy held at a Nairobi Hotel.
The 440-kilometre four-lane dual carriageway, which will link Nairobi and Mombasa, is expected to enhance regional connectivity, boost economic growth, and cut travel time between Kenya’s capital and its busiest port.
The project, unveiled during President William Ruto’s US state visit in May 2024, is set to be Africa’s largest toll road once completed.
US Backs First Major Road Project in Kenya
This initiative marks a shift in Kenya’s infrastructure financing, traditionally dominated by China, which has been the country’s largest bilateral lender. With the US now stepping in through Everstrong Capital, competition for economic influence in the region is intensifying.
Despite the presence of the Chinese-built Standard Gauge Railway (SGR), Kenya’s road network remains insufficient. While the SGR plays a key role in freight transport, many manufacturers still prefer trucking due to flexibility, cost, and logistical constraints tied to rail transport.
The new deal also follows the collapse of a previous agreement with Bechtel Engineering in 2022, after cost concerns pushed the projected toll road expenses to Ksh1.6 trillion.
Everstrong’s partnership with the Kenya National Highways Authority (KeNHA) signals a fresh start, with Kenyan investors, pension funds, and private sector players now set to participate in the project’s financing.
Global Investors Eye Kenya’s Infrastructure Market
With American Development Finance Institutions (DFIs) leading the investment, the Usahihi Expressway represents a strategic entry point for US investors into Kenya’s infrastructure sector.
Everstrong Capital, founded in 2015, has a track record of funding large-scale projects across Africa, including investments in energy, transport, and communication networks.
The expressway’s development aligns with Kenya’s long-term economic goals, promising to create jobs, improve supply chain efficiency, and provide a modern alternative to the congested Mombasa Road.
