Nairobi: Kenya has signed a 1.5 billion dollar agreement with two Chinese companies to expand one of the country's busiest transport routes. The project will upgrade the highway stretching from Nairobi through the Rift Valley toward western Kenya, a corridor that also connects to landlocked countries in East Africa.
The highway will be expanded in two phases. China Road and Bridge Corporation will work with Kenya’s National Social Security Fund to widen a 139 kilometer part of the road. This section of the project is expected to cost about 863 million dollars. The second phase will cover a 94 kilometer stretch and will be carried out by Shandong Hi Speed Road and Bridge International at an estimated cost of about 678 million dollars.
Construction is expected to be completed by the end of 2027. Once the work is finished, the road will operate under a toll system for 28 years. The toll revenue will allow the companies and partners involved to recover their investment.
Kenya is using a mix of public investment and private funding rather than relying fully on loans. Government officials said this model will help reduce financial pressure at a time when the country is already facing a tight borrowing environment. A large share of the debt for the project is expected to come from Chinese lenders, including the Export Import Bank of China.
The new deal replaces an earlier agreement with a French led consortium that was canceled earlier this year. Analysts say the move shows Kenya strengthening economic ties with China, especially in infrastructure development.
The expanded road is expected to ease traffic, reduce transport costs and support trade through the port city of Mombasa. Officials believe the project will boost regional goods movement and help businesses that depend on road transport.
While the project is seen as important for economic growth, some economists warn that long term toll operations may affect road users and future transport costs. Others say the new funding approach signals a shift in how large infrastructure projects are financed in Africa, with more shared investments and partnerships instead of full government borrowing.
The Kenyan government says the project is a major step in upgrading transport networks and supporting national development goals.