US firm gets Sh452b Mombasa-Nairobi expressway plan rolling

Public Vehicles plying past Nairobi Express way Westlands, that is being constructed by National Government, through The Ministry of Transport and Infrastructure, KENHA and China Road and Bridge Corporation. [FILE] Plans for the "Usahihi" Expressway project, a 440-kilometre four-lane dual carriageway linking Nairobi and Mombasa, are taking shape. This is after Everstrong Capital, a US-based infrastructure investment firm, announced plans to secure funding for the $3.5 billion (Sh452 billion) initiative. Everstrong will tomorrow host a signing ceremony in Nairobi to mark the Transaction Advisory and Placement Services Agreement, a crucial milestone in the project's fundraising efforts. The Usahihi Expressway, which loosely translates to "done correctly" in Swahili, aims to reduce travel time between the two cities, stimulate economic growth, and enhance regional connectivity. The project was unveiled during President William Ruto's state visit to the United States in May 2024, emphasising its role in improving transport links between Kenya's capital and the port city of Mombasa. While the corridor is served by the Chinese-built Standard Gauge Railway (SGR), the road network remains inadequate. Despite the SGR's potential to ease the transportation of goods, a study revealed that many Kenyan manufacturers still prefer trucking due to factors such as cost, flexibility, and the limitations of the railway system. The Usahihi Expressway will represent the first major US-backed road project in Kenya, amid ongoing competition between China and the US for economic influence in the region. China has been Kenya's largest bilateral lender, financing numerous infrastructure projects, often at the expense of American firms. A general view of the Nairobi Expressway along Uhuru Highway ,Nairobi. [File, Standard] The agreement between the Kenya National Highways Authority and Everstrong follows a previous deal with Bechtel Engineering that fell through in July 2022. Bechtel had declined to participate, citing inflated costs associated with a proposed toll fee model, which they argued would increase the project's total cost to Ksh1.6 trillion. Under the new fundraising arrangement, Kenyan investors will have the opportunity to participate in the project. Everstrong Capital, founded in 2015, focuses on developing critical infrastructure in Africa to improve the welfare of local populations. The firm aims to achieve financial returns for investors through projects in energy, transportation, and communication. The US government is expected to play a key role in financing the project, with American Development Finance Institutions leading the investment alongside Kenyan private sector investors and pension funds.

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US firm gets Sh452b Mombasa-Nairobi expressway plan rolling

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