Ksh129 Billion Loan Needed for Nairobi-Mombasa Expressway

Everstrong Capital (K) Ltd, the US-based infrastructure investment firm that committed to financing the Ksh450 billion Usahihi Expressway, is now looking for Ksh129 billion ($1 billion) to jumpstart the project.

The 440 Kilometer, a four-lane dual carriageway linking Nairobi and Mombasa is set to be one of Kenya’s most transformative infrastructure developments by reducing travel time from 8 or 10 hours to just 4 hours.

The expressway, named “Usahihi” a Kiswahili word meaning “done correctly” is expected to boost trade, improve logistics, and drive economic growth along the country’s busiest transport corridor.

Everstrong Capital is spearheading fundraising efforts through a Transaction Advisory and Placement Services Agreement signed with CPF Capital and Advisory Ltd, a subsidiary of CPF Group on Thursday, February 6.

Further, the initiative is backed by the Pack Hunters Club (PHC), a consortium of pension funds, fund managers, investment banks, insurance firms, and banking institutions.

A section of Mombasa Road. PHOTO/Nairobi Expressway

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IndustryStakeholders Supporting the Nairobi-Mombasa Expressway

Unlike previous mega-projects done in Kenya which were primarily financed through foreign loans, the Usahihi Expressway is setting a historic record by prioritizing local institutional investment. Industry stakeholders supporting the project include;

The Association of Pension Trustees and Administrators of Kenya (APTAK), Fund Managers Association (FMA), Kenya Association of Stockbrokers & Investment Banks (KASIB) and Kenya Bankers Association (KBA).

Additionally, the Association of Kenyan Insurers (AKI) and the Association of Retirement Benefits Schemes (ARBS) are backing the project.

CPF Group Managing Director Dr. Hosea Kili expressed his support for the project saying that it would greatly boost the economy.

“This is more than just an infrastructure project. It is a bold step towards reshaping Kenya’s economy through private-sector-led investments. It demonstrates the power of domestic institutional capital in fueling economic growth.

“This initiative highlights the strength of strategic partnerships between local and international investors, leveraging blended capital to bring large-scale projects to life. We are not just building a road, we are laying the foundation for sustainable development, job creation, and long-term prosperity,” he said.

At the same time, Former U.S. Ambassador to Kenya Kyle McCarter, now Chairman of Usahihi Expressway Ltd said that the Public-Private Partnership (PPP) model being used for the Usahihi Expressway reflects a broader shift towards self-reliant development financing.

“For the first time in Africa, local pension funds and financial institutions are investing over $1 billion in their own infrastructure. Usahihi is proof that Africa must transition from aid to trade on the path to self-reliance,” he said.

With Ksh129 billion required to kickstart construction, Everstrong Capital and CPF Capital and Advisory are working to secure commitments from institutional investors.

Also Read: Did Uhuru Acquire Company Behind Expressway Construction?

About the Expressway

The project, set to become Africa’s largest toll road, was announced during President William Ruto’s May 2024 state visit to the US, aiming to improve transport links between Nairobi and Mombasa.

Despite the Chinese-built Standard Gauge Railway (SGR), Kenya’s road network remains insufficient, with many manufacturers opting for trucking due to cost and flexibility.

The expressway is the first major US-backed road project in Kenya, marking a shift in the growing competition between China and the US for economic influence.

While China has been Kenya’s largest lender, the new project highlights the US’s increasing role in Kenya’s infrastructure.

The deal with Everstrong Capital follows the collapse of a previous agreement with Bechtel Engineering in 2022, due to inflated costs.

Under this new arrangement, Kenyan investors, including private investors and pension funds, will also participate, with US Development Finance Institutions providing key funding for the project.

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