Kenya To Construct 473km Nairobi-Mombasa Expressway At KSh 556b

• The Kenya National Highways Authority (KeNHA) clarified that the tender for the construction of the road was yet to be awarded
• Among the companies that expressed interest were Korean Overseas Infrastructure and Development Corporation and American firm Bechtel
• It is expected that the expressway between Kenya's two largest cities will ease traffic congestion, facilitating the movement of goods and services

TUKO.co.ke journalist Japhet Ruto brings over eight years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

The National Treasury has revealed that the proposed Nairobi-Mombasa Expressway, spanning 473 kilometres, has obtained initial approval for construction through a public-private partnership (PPP) model.

How much will the Nairobi-Mombasa expressway cost?

The milestone marks the green light for the project, which will cost $3.6 billion (KSh 556.2 billion) to advance into the development phase.

The expressway between Kenya's two largest cities is expected to ease traffic congestion, facilitating the movement of goods and services.

"Mobilisation of private sector resources to develop and expand key trunk networks in the country, such as the Mombasa-Nairobi Expressway, which is at advanced stages of preparations, having been granted first-stage approval by the PPP [Public-Private-Partnership] committee recently and therefore ready to progress to the project development phase. The estimated cost is $3.6 billion," Treasury stated as reported by Business Daily.

Who will construct the Nairobi-Mombasa expressway?

The Kenya National Highways Authority (KenHA) clarified that the tender for road construction was yet to be awarded.

Among the companies that expressed interest were Korean Overseas Infrastructure and Development Corporation and American firm Bechtel.

Bechtel, which the government had tapped at KSh 300 billion, failed to start the project after it disagreed with the government on charging toll fees to users.

Instead, it preferred the state to finance its construction, meaning the government would incur more loans.

"The construction of the project will likely take five years to complete and work will commence upon completion of studies, designs, negotiation and closure of all financing agreements," it stated.

Why Nairobi Expressway will cost more

The Nairobi Expressway was built on a public-private partnership between Kenya and China Road and Bridge Corporation.

The firm was supposed to recover its investment via tolling fees paid by motorists for 27 years.

But, the government is still funding the project, which will see taxpayers spend over KSh 24.8 billion.