Kenya has signed a landmark agreement with two major Chinese state-owned companies to launch a 1.5-billion-dollar highway expansion project aimed at transforming one of East Africa’s most important trade corridors. The project, confirmed by Kenya’s National Highways Authority, is being implemented under a public-private partnership structure and is expected to significantly ease transport between the port of Mombasa and inland markets. This development was first reported by Reuters.
The initiative will unfold in two key phases. The first phase will upgrade a 139-kilometre stretch of road into a dual carriageway of four to six lanes. According to Reuters, this segment will be executed by China Road and Bridge Corporation in partnership with Kenya’s National Social Security Fund. The second phase will modernise an additional 94-kilometre section, with Shandong Hi-Speed Road and Bridge International taking the lead as highlighted by Business Insider Africa. The financial structure for both phases consists of 75 percent debt and 25 percent equity, with terms aligned to Kenya’s long-term infrastructure strategy.
Project documents referenced by Reuters indicate that once construction is completed by the end of 2027, the highway will enter a 28-year toll concession period. This arrangement allows the contractors to recoup their investment while ensuring continued maintenance and operational efficiency. Analysts say the model reflects a shift in Kenya’s approach to major infrastructure, favouring public-private collaboration to reduce pressure on public finances.
The improved highway is expected to cut travel times, reduce logistics costs and enhance safety, creating a smoother route for goods moving from Mombasa to western Kenya, Uganda and other neighbouring countries. Business Insider Africa notes that the deal also marks a renewed phase of Chinese engagement in East Africa’s infrastructure sector, following delays and funding shifts from other international partners.
