Kenya: Govt Halts Sh468bn Nairobi-Mombasa Expressway Project

Nairobi — The government has terminated plans for the construction of the Sh468 billion Nairobi-Mombasa Expressway, citing failure by the project to meet the evaluation criteria under Kenya's Public-Private Partnership (PPP) Act, 2021.

The proposed 459-kilometre toll road -- dubbed the Nairobi-Mombasa (Usahihi) Expressway -- was to be developed by American private equity firm Everstrong Capital Kenya under a Design, Build, Finance, Operate, Maintain and Transfer (DBFOMT) model.

In its 54th ordinary meeting held on July 2, 2025, the PPP Committee of the National Treasury's Economic Planning Department resolved to abandon the project, ruling that it "does not meet the relevant criteria" for approval.

"The PPP Committee, National Treasury Economic Planning, delivered its decision during its 54 Ordinary PPP Committee mecting held on 2" July, 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," reads the notice in part.

Instead, the committee directed KeNHA to restructure the plan into an expansion of the existing A8 highway, which connects Nairobi to Mombasa.

It was expected to link Mlolongo in Machakos County to Bonje in Mombasa County, providing a faster and more efficient alternative to the busy A8 highway.

According to a disclosure by the Kenya National Highways Authority (KeNHA), the proposal had earlier received conditional approval to proceed to the Project Development Phase (PDP), during which feasibility studies were conducted and submitted in May 2025.

The expressway had been touted as a major infrastructure milestone that would significantly reduce travel time and costs between Nairobi and the port city, while boosting trade and tourism along the corridor.

Its cancellation shifts the government's focus towards upgrading the current highway.

KeNHA, in its public notice, reiterated its commitment to adhering to the PPP Act, 2021, and assured the public of transparency in all its infrastructure undertakings.

The government also maintained that it remains committed to delivering critical road projects to enhance connectivity across the country.

The cancellation comes amid heightened scrutiny of mega infrastructure projects, with emphasis on financial viability, compliance with legal frameworks, and value for money for taxpayers.

Read the original article on Capital FM.