Why State has abandoned plans for Sh468b Nairobi-Mombasa expressway

Business
By Graham Kajilwa | Aug 13, 2025
A section of the Nairobi-Mombasa highway with the Standard Gauge Railway in the background. The road will now be expanded to accommodate more traffic. [David Gichuru, Standard]

The government has abandoned the ambitious plan for the $3.6 billion (Sh468 billion) expressway to Mombasa, opting to instead expand the existing Nairobi-Mombasa Highway.

The Kenya National Highway Authority (KeNHA), in a notice, said the proposal for the expressway does not meet the criteria, hence the decision to abandon it.

The decision comes just a year after President William Ruto inked a deal with an American firm, Everstrong Capital, for the construction of the road during his visit to the United States in May 2024.

The 459km road dubbed Usahihi Expressway rode on the success of the 42km Nairobi Expressway, running from Westlands to the Jomo Kenyatta International Airport.

It would have cut travel time by road from Nairobi to Mombasa from 10 and a half hours to as little as four and a half hours.

The road, under a public-private partnership (PPP) arrangement, was to commence at Mlolongo, Machakos County, and terminate at Bonje in Mombasa.

The decision by the government to abandon the project was informed by findings contained in a report prepared by KeNHA, the PPP Directorate domiciled at the National Treasury, and the PPP Committee.

The notice from KeNHA, which is the contracting authority, says the PPP Committee and the National Treasury delivered their decision during the 54th ordinary PPP Committee meeting held on July 2, 2025.

“To the effect that the committee determined that 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 notice says.

It adds: “… directed that the contracting authority considers restructuring the project to meet the evaluation criteria through expansion of the existing A8 highway. This proposal may then be resubmitted to the committee for a fresh determination in line with Section 43(12) of the PPP Act, 2021.”

Section 43(12) of the PPP Act, 2021, states that where the committee (PPP Committee) determines that the project should be abandoned under Section 43 (11)(c), the contracting authority, in this case KeNHA, may elect to restructure the project to meet the evaluation criteria and resubmit the project to the committee for a fresh determination.

The PPP project was initiated through a privately initiated proposal (PIP), where Everstrong Capital would have been responsible for the design, build, financing, operation and maintenance, and later transfer to the government.

In June, Everstrong Capital, through Usahihi NME Consortium, came out to deny claims that the government had opted to abandon the project as proposed.

“We have observed with concern a recent statement circulating in the public domain. We wish to clearly state that the information shared is inaccurate and does not represent the true status or progress of the project,” read a statement from the consortium in part.

Everstrong Capital, which is associated with former US Ambassador to Kenya Kyle McCarter, and Usahihi Expressway Ltd handed the feasibility study of the project to KeNHA in May in anticipation of the green light for breaking ground early 2026.

“It (feasibility study) captures the sheer scale of ambition behind the expressway – a project designed to cut travel time between Nairobi and Mombasa from 10 and a half hours to as little as four and a half hours, while dramatically improving road safety, unlocking regional trade, and accelerating job creation,” reads a statement from the firm.

At one point during the public participation stage of the project, it was reported that heavy commercial vehicles would be compelled to use the toll road in a bid to manage traffic on the A8 highway.

“We recognise the vital role that Heavy Commercial Vehicles and Large Goods Vehicle operators play in the economy, particularly in facilitating trade and the movement of goods between Nairobi and Mombasa. Their concerns and insights are invaluable to us, and we are dedicated to ensuring that their voices are heard as the project progresses,” said Everstrong Capital Chief Executive Philip Dyk.

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