Kenya Invests in New Infrastructure with $3.5 Billion Expressway
With the ink barely dry on the feasibility study, Kenya is gearing up for one of the most ambitious infrastructure projects in its history: the USD 3.5 billion Usahihi Expressway.
Spanning a remarkable 440 kilometres between Nairobi and Mombasa, this massive undertaking is set to rewrite the script on transport, trade, and investment in East Africa. The project finance for the expressway is being spearheaded by Usahihi Expressway Limited, a special purpose vehicle backed by US-based investment firm Everstrong Capital. It’s no understatement to say that expectations are sky-high.
The expressway’s route mirrors the path of the existing Nairobi-Mombasa highway—one of the region’s busiest arteries for freight, logistics, and passenger travel. Upon completion, it’s poised to slash travel times from the bustling Kenyan capital to the coast to just four and a half hours, a journey that can currently take up to 12. This acceleration isn’t just about shaving hours off the clock: it’s about propelling Kenya into a new era of regional connectivity, economic growth, and private sector innovation.
The Public-Private Partnership Model
Usahihi Expressway Limited is close to finishing its feasibility study, due by May 2025. This milestone is the green light that will pave the way for a formal nod from Kenya’s National Treasury Public-Private Partnerships (PPP) Unit. And it’s here where things get interesting. By opting for the PPP model, Kenya is tapping into global best practices that have transformed infrastructure financing in developed and emerging economies alike.
The PPP approach is hardly business as usual. Everstrong Capital’s game plan is to raise KES 129 billion (about USD 1 billion) from domestic pension funds and financial institutions. CPF Capital and Advisory has been tapped to provide Transaction Advisory and Placement Services, with the local capital-raising campaign now in full swing. According to Everstrong’s management: “Engaging local investors and pension funds is critical for ensuring the project delivers not just roads, but sustainable returns and a genuine stake in Kenya’s growth story.”
International Capital and Local Ambitions
But that’s just half the tale. The balance of the project’s massive budget—KES 323 billion (USD 2.5 billion)—will come from global investors. It’s a bold pitch to the international community, one that recognises the strategic significance of the Nairobi-Mombasa corridor for Africa’s future. Everstrong’s fundraising campaign is making waves across financial capitals, as Kenya positions itself as the gateway for investment into Africa’s logistics and infrastructure boom.
Industry insiders note that projects of this scale are increasingly being structured to attract both local and global capital, derisking investments and accelerating timelines. A senior Everstrong executive explained: “The Usahihi Expressway isn’t just a Kenyan project—it’s a statement that East Africa is open for business, with bankable projects that can deliver stable, long-term returns.”
From Blueprint to Breaking Ground
Once the final approvals are secured, construction on the Usahihi Expressway is expected to kick off in 2026. The project timeline anticipates around four years to completion. It’s a tight schedule, reflecting both the urgency and confidence in Kenya’s construction sector. At the heart of this venture is a robust public-private concession agreement: Everstrong will operate the expressway for 30 years, recouping its investment through tolls—primarily levied on heavy commercial vehicles.
According to recent forecasts, toll income from these vehicles alone could account for roughly 75% of total project revenues. With commercial traffic forming the backbone of the Nairobi-Mombasa transport corridor, the revenue projections are far from wishful thinking. Yet, there’s more to the story than simple numbers.
Land Acquisition and Corridor Development
Securing the land for a project of this scale is no mean feat. Everstrong has earmarked KES 12.9 billion (about USD 100 million) for land acquisition, reflecting the complexity of working along such a vital route. Unlike past projects, where compensation delays and land disputes have slowed progress, the Usahihi Expressway team is moving early to ensure seamless access and minimal disruption.
This foresight is crucial. As one infrastructure advisor noted: “Successful mega-projects are won or lost in the planning phase. Getting land acquisition right, with fair compensation and transparent processes, helps maintain momentum and trust from all stakeholders.” Local communities, landowners, and businesses stand to benefit directly from the corridor’s development, as new service roads, access points, and support infrastructure are woven into the project.
More Than Just a Road
Let’s not kid ourselves: this isn’t simply about building another road. The Nairobi-Mombasa expressway is expected to turbocharge economic activity along its entire length. With travel times slashed, businesses from logistics to manufacturing will gain new efficiencies. Importers and exporters will see faster, more reliable delivery of goods. Farmers will have better access to markets. For Kenya’s booming tourism sector, it’s a shot in the arm as the coast becomes more accessible to domestic and international visitors alike.
Local suppliers and contractors are already eyeing opportunities in construction, materials, hospitality, and retail. There’s a strong focus on skills transfer, job creation, and community engagement throughout the build phase. The ripple effects, both direct and indirect, are set to be felt for decades.
Sustainability, Resilience, and Future-Proofing
Modern infrastructure is about more than concrete and asphalt. The Usahihi Expressway is being designed with climate resilience and future-proofing at its core. The project team is working closely with environmental and engineering consultants to ensure compliance with Kenyan and international standards. Best practices in stormwater management, wildlife crossings, and road safety are being integrated from day one.
Everstrong’s vision goes further: “We want this expressway to be a showcase for how Africa can build world-class infrastructure that’s resilient, safe, and future-ready.” With growing concerns over climate change, resilience is a non-negotiable aspect for investors, regulators, and the communities that will depend on the corridor for generations.
Challenges and Lessons from Previous Projects
Of course, megaprojects never go off without a hitch. Kenya’s track record with large infrastructure schemes—from the Standard Gauge Railway to the expansion of port facilities—shows both the risks and rewards of betting big. Financing, land, environmental approvals, and political shifts can all threaten timelines.
However, by mobilising a blend of local and international capital and leveraging a transparent PPP framework, the Usahihi Expressway is set up to avoid some of the pitfalls that have plagued past ventures. The collaborative approach, early stakeholder engagement, and robust risk mitigation strategies are already being held up as a model for future projects.
The Road Ahead for Kenya and East Africa
As the local fundraising drive ramps up and international investors circle, all eyes are on the National Treasury’s PPP Unit. Once the green light is given in 2025, Kenya’s construction sector will be primed for action. The four-year build will be a showcase of local expertise, international collaboration, and cutting-edge project management.
Industry analysts are optimistic: “If delivered as planned, the Usahihi Expressway could become the benchmark for how Africa finances and delivers strategic infrastructure at scale.” The 30-year concession model, the focus on tolling heavy commercial traffic, and the integrated corridor development offer lessons for policymakers and investors across the continent.
Building Momentum for Kenya’s Digital and Green Future
With the Usahihi Expressway, Kenya isn’t just building a road. It’s forging a digital and green corridor that will shape the nation’s—and region’s—future. Expect smart infrastructure, real-time traffic management, and opportunities for electric vehicle charging and renewable energy integration. This project isn’t just catching up with global trends; it’s setting them.
As Kenya pushes ahead, the message to investors and industry is clear: the future belongs to those willing to innovate, collaborate, and invest for the long haul. The Usahihi Expressway stands as a bold signal that Kenya is ready to lead the way.
