The Public–Private Partnership (PPP) Committee has rejected the proposal to build a 459-kilometer expressway between Nairobi and Mombasa, citing failure to meet the legal and technical requirements of the country’s PPP Act.
- •The committee, under the National Treasury and Economic Planning, voted during its meeting to abandon the “Usahihi” Nairobi–Mombasa Expressway plan spearheaded by American asset manager Everstrong Capital and its Kenyan partner CPF Capital & Advisory Ltd.
- •The decision came just five months after the consortium unveiled plans to raise KSh129 billion from domestic investors, including pension funds, insurers, and banks, as part of a build–operate–transfer concession.
- •The statement directed KeNHA to consider restructuring the project into an expansion of the existing A8 highway rather than building a new four-lane dual carriageway.
“The proposal does not meet the relevant criteria and should be abandoned in accordance with Section 43(11)(c) of the PPP Act, 2021,” the PPP Committee said in a public notice issued by the Kenya National Highways Authority (KeNHA).
The rejection deals a blow to a project marketed as a symbol of the country’s push to mobilize domestic capital for strategic infrastructure and reduce reliance on foreign loans. The Usahihi Expressway Ltd., chaired by former U.S. ambassador to Kenya Kyle McCarter, had touted the project as a “transition from aid to trade” for Africa. The project promised to cut travel time between the two cities from 10.5 hours to 4.5 hours, with toll charges projected at KSh 12 – 13.
The plan followed years of stalled negotiations over an earlier 2017 deal with U.S. engineering firm Bechtel, worth KSh 230 billion, which the government shelved in 2019 amid debt concerns. By February this year, Everstrong and CPF had secured a transaction advisory and placement services agreement, with the National Treasury appointing a 30-member committee of Kenyan financial-sector leaders to chart a roadmap for PPP financing.
KeNHA’s evaluation of the Usahihi proposal, completed in May, triggered the PPP Act’s stringent vetting process. The shift toward upgrading the A8 corridor aligns with the Treasury’s broader review of PPP deal structures to lower fiscal risk and deliver quicker returns. While the revised plan could still involve private capital, the scale and ambition of the original Usahihi expressway is unlikely to survive.
