Usahihi Expressway Limited, the developer behind the proposed Nairobi-Mombasa Expressway, anticipates completing the project’s feasibility study by May. This milestone will pave the way for seeking final approval from the National Treasury’s Public-Private Partnership (PPP) unit, with the goal of commencing construction in early 2026.
A feasibility study evaluates the practicality of a project, addressing factors such as environmental impact and the need for relocation of affected individuals. Upon its completion, Usahihi Expressway Limited plans to finalize financial arrangements by the end of the year.
The proposed 440-kilometer toll highway aims to reduce travel time between Nairobi and Mombasa from over eight hours to approximately 4.5 hours. To finance the project, Usahihi Expressway Limited has partnered with CPF Capital and Advisory to mobilize $1 billion (approximately KSh129.3 billion) from local banks and pension funds. Additionally, Everstrong Capital, a US-based private equity firm backing the project, intends to raise $2.5 billion (about KSh323.4 billion) from international markets, bringing the total project cost to $3.5 billion (around KSh452.8 billion).
Everstrong Capital has also committed $100 million (approximately KSh12.9 billion) for land acquisition along the proposed route. This initiative offers landowners the option to exchange their property for equity in the expressway, with an anticipated return of 17.5%.
The developer is optimistic about securing local funding, highlighting the opportunity for pension funds to invest in a 30-year asset that aligns with their long-term investment strategies. The expressway is expected to be operated by the US firm for three decades before being handed back to the Kenyan government.
