Time spent on the road by motorists between Mombasa and Nairobi is set for a significant reduction following signing of an agreement between the Kenya National Highways Authority and Everstrong Capital for the development of 4-6 lane dual carriage 440km road.
- •The $3.6 Billion expressway also known as Usahihi promises to bring the current 10.5-hour journey between Nairobi and Mombasa down to 4.5 hours.
- •Project is structured as a Public Private Partnership with revenue coming from road users.
- •On Thursday, President William Ruto who is on an official trip to the United States of America declared the road’s initiation.
- •The mega project appeared to advance in 2017 when Kenya signed a Sh230 billion deal with American engineering firm Bechtel for the road’s construction.
- •The government in 2019 suspended the construction of the Mombasa-Nairobi expressway after Kenya hit its debt ceiling.
The project anticipates attracting investments totaling USD 3.6 billion, sourced from international investors, development agencies, pension funds, and an exceptionally large number of Kenyan private investors.
Everstrong Capital signed the Project Development Agreement (PDA) with Kenya Highways Authority (KeNHA), authorizing the full development rights to Everstrong Capital and its partners.
A statement on the project stated that the construction of the expressway poses no financial risks to the Kenyan government, as it is structured to operate independently from the Government of Kenya’s balance sheet and is projected to be financially self-sustaining.
“The Usahihi Expressway isn’t just a project; it’s a testament to the transformational power of doing things right. It symbolizes passion, commitment, and transparency, demonstrating how to deliver immense value, not only to Kenyan citizens but to the entire East Africa region. It’s about changing lives and shaping the future of Kenya,” said Kyle McCarter, Everstrong Capital Partner & Usahihi Chairman says. Kyle McCarter is also the immediate former US Ambassador to Kenya.
Why The Project Stalled
In 2017, Bechtel International Inc. was chosen by the Kenya National Highways Authority to construct the Nairobi-Mombasa expressway, with a budget of Sh230 billion. However, in 2019, the government suspended the construction of the expressway after Kenya reached its debt ceiling.
“Bechtel and the US government have remained fully engaged with Kenya, and we continue to follow up on President Trump’s and President Kenyatta’s commitment to make the project a reality. But Kenya’s debt is spiraling out of control. We don’t want to pile up more debt on Kenyans. We want to do business transparently and ethically. Therefore, the onus is on Kenya to put its debts in order,” said Kyle McCarter, who was serving as the US Ambassador to Kenya at the time.
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