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Home News $3.5 billion Kenya highway project faces challenges

$3.5 billion Kenya highway project faces challenges

Kenya’s massive $3.5 billion highway project is facing challenges.

by Mike Woof
October 1, 2025
in News
Reading Time: 2 mins read
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Improving the highway link between Kenya’s capital, Nairobi, and its premier port and second city, Mombasa, is crucial for the country’s continuing economic growth – image courtesy of © Joshua Wanyama| Dreamstime.com

Improving the highway link between Kenya’s capital, Nairobi, and its premier port and second city, Mombasa, is crucial for the country’s continuing economic growth – image courtesy of © Joshua Wanyama| Dreamstime.com

Kenya’s troubled Nairobi-Mombasa highway upgrade project is facing challenges once more. Expected to cost around $3.5 billion, the project aims to improve the 473km highway linking Kenya’s capital, Nairobi, with its premier port and second city, Mombasa. The upgrade would cut the journey time between the two cities to just four hours.

The work is regarded as a priority for Kenya’s continued economic development as the existing A8 highway linking the two cities is no longer able to cope with current traffic demand. Upgrading the route is crucial for improving Kenya’s transport sector, boosting the economy. This will also facilitate further growth for Kenya’s tourism sector, an important industry for the country.

The project has been under the management of the Kenya National Highways Authority (KeNHA) and was being carried out under the PPP model by a US private equity firm Everstrong Capital Kenya.

The Usahihi Expressway project will now have to be restructured. Tolls from large trucks were expected to deliver up to 75% of the revenue for the project as previously envisaged. Everstrong was to have operated the highway under a 30-year concession package.

Meanwhile, a further $317 million of funding is being provided by the Kenyan Government for the Mombasa Port Expansion Project. This will further assist in the upgrading of the facility, which will see the port becoming the premier port for East Africa once complete. Road links to and from the port will be upgraded to handle greater numbers of heavy vehicles, as well as the capacity of the facility itself. The work is due for completion at the end of 2025.

Categories: Road Structures

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