The “Usahihi” Expressway project, a 440-kilometre four-lane dual carriageway connecting Nairobi and Mombasa, is gaining momentum.
Everstrong Capital, a US-based infrastructure investment firm, has announced its intention to secure funding for the $3.5 billion (Sh452 billion) initiative. Today, February 6, Everstrong will host a signing ceremony in Nairobi to formalize the Transaction Advisory and Placement Services Agreement, marking a significant step in the project’s fundraising process.
The Usahihi Expressway, which translates to “done correctly” in Swahili, aims to reduce travel time between Kenya’s capital and its port city, boost economic growth, and enhance regional connectivity. Set to be Africa’s largest toll road, the project was unveiled during President William Ruto’s state visit to the United States in May 2024, emphasizing its role in improving transport links between the two cities.
Despite the presence of the Chinese-built Standard Gauge Railway (SGR), the current road network remains inadequate. Although the SGR facilitates goods transportation, many Kenyan manufacturers still prefer trucking due to cost, flexibility, and the limitations of the railway system.
This expressway marks the first major US-backed road project in Kenya, highlighting the intensifying competition between China and the US for economic influence in the region. For years, China has been Kenya’s largest bilateral lender, financing numerous infrastructure projects, often sidelining American firms. The new initiative reflects the US’s effort to expand its presence in Kenya’s infrastructure sector.
The Everstrong agreement with the Kenya National Highways Authority follows the collapse of a previous deal with Bechtel Engineering in July 2022. Bechtel withdrew from the project, citing inflated costs tied to a proposed toll fee model that would have raised the total cost to Ksh1.6 trillion.
Under the new arrangement, Kenyan investors will have the opportunity to participate in the project. Everstrong Capital, founded in 2015, focuses on developing critical infrastructure across Africa in energy, transportation, and communication projects.
The US government will play a key role in financing the initiative, with American Development Finance Institutions leading the investment alongside Kenyan private sector investors and pension funds.
