Kenya has unveiled a $1.5 billion highway expansion project, signalling a renewed turn toward Chinese financing as the country confronts strict limits on public borrowing. The project, launched on Friday, comes after the collapse of a US-backed Bus Rapid Transit agreement and underscores China’s re-emergence as a key infrastructure partner in East Africa. The new arrangement marks a shift in Kenya’s external partnerships following Washington’s foreign-aid review and termination of the MCC Threshold Program.
The highway expansion will be delivered in two phases through a debt–equity structure, with 75% financed through loans and 25% through equity. China Road and Bridge Corporation and Shandong Hi-Speed Road and Bridge International will lead construction, partnering with Kenya’s National Social Security Fund, which will contribute a significant share of the equity. Financing is expected from Chinese commercial banks and the Export-Import Bank of China.
Once completed in 2027, the upgraded dual carriageway will be operated under a 28-year toll concession. Kenya expects the project to boost regional connectivity, support trade routes linking Nairobi to neighbouring countries, and reinforce China’s growing role in Africa’s transport infrastructure.
