The Kenya National Highways Authority (KeNHA) has inked a $3.6 billion deal with Everstrong Capital LLC to construct an expressway that will connect Nairobi and Mombasa.
The expressway spans 440 kilometers (273 miles) and is expected to reduce travel time between the two cities by half.
President William Ruto’s visit to the United States has heralded a wave of investment opportunities, with the expressway deal being a prime example of the growing partnership between Kenya and global investors.
Usahihi Expressway
The mega highway will be named Usahihi and will comprise both four and six lanes stretching to the coastal region.
According to the press statement sent to newsrooms, the project is expected to last 3-4 years.
It will be under the management of Everstrong for a period not exceeding 30 years before it’s handed over to the Kenyan government.
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Usahihi will generate its finances to pay back the loan – with the Kenyan government expected to introduce a toll station after its completion.
This is because it’s structured as a Public Private Partnership (PPP) with revenue coming from road users.
“Usahihi will organize finance, construction, tolling, operation, and maintenance of the expressway under a 30-year concession with construction lasting 3-4 years,” read the press release.
Everstrong Investments in Kenya
Everstrong has a presence both in the US and Kenya.
It initiated the Everstrong Kenya Infrastructure Fund (EKIF) to finance projects in energy, transportation, communication, and social infrastructure within East Africa.
It has invested in Gulf Power’s Athi River Power project and its founding sponsorship of Milele Energy.
Everstrong is also an independent power producer holding a 25% stake in the Lake Turkana Wind Project.
“The U.S. Embassy welcomes the signing of a project development agreement, which marks a significant step forward in the construction of a new Nairobi-Mombasa highway,” said Meg Whitman, United States Ambassador to Kenya. “
Usahihi is poised to create employment opportunities and will serve as a catalyst for innovation and business opportunities in the East African region.
