The government of Kenya has officially launched a US$1.5 billion highway expansion project, in partnership with two Chinese state-owned firms: China Road and Bridge Corporation (CRBC) and Shandong Hi‑Speed Road and Bridge International (SDRBI).
The project the largest such deal with China since a period of reduced lending targets a key transport corridor connecting the port city of Mombasa to Nairobi and onward to Kenya’s western regions and neighbouring landlocked nations.
Financing will follow a mixed debt–equity model: about 75% financed through debt, with the remaining 25% equity contributed mainly by local stakeholders, including the country’s pension fund, National Social Security Fund (NSSF).
Construction is planned in two phases: the first aims to widen existing road stretches (about 139 km) into four- and six-lane dual carriageways, and the second will upgrade another 94 km into a six-lane road.
Completion is expected by end-2027; after that, the two firms will have a 28-year toll concession to recoup their investment.
The project signals renewed Chinese engagement in African infrastructure, under a more cautious financing model. For Kenya, it promises improved connectivity, reduced transport times, and more efficient trade routes potential catalysts for economic growth, regional trade, and enhanced mobility. However, it also raises questions about long-term debt obligations and toll burden for commuters.
Source ; Reuters
By Michelle Ndaga
