MWE Correspondent
Kenya has embarked on a major $1.5 billion highway expansion project in partnership with two Chinese construction firms, signalling a clear shift in the country’s infrastructure strategy.
The move replaces a previously planned U.S.-backed transport initiative that was ultimately shelved, reflecting changing global investment dynamics.
The project focuses on upgrading a crucial transport corridor linking the port city of Mombasa to western Kenya and neighbouring landlocked countries. Officials say the improvements will not only enhance regional trade and mobility but also facilitate economic growth by reducing transport costs and travel times. The corridor is seen as a lifeline for industries, agriculture, and cross-border commerce.
To fund the project while managing public debt concerns, Kenya and its Chinese partners have agreed to a debt-equity hybrid financing model. This structure allows significant foreign investment without overburdening the government with full sovereign borrowing, reflecting a growing trend in large-scale African infrastructure projects.
Observers note that China’s involvement underscores the country’s continuing influence in Africa’s infrastructure development, particularly in sectors such as transport, energy, and industrial facilities. With U.S. engagement in the region receding, Beijing’s role in funding and building strategic projects has become increasingly prominent.
Also Read; Africa Endorses Algiers Declaration to Boost Drug Production
Government officials emphasise that the highway expansion is part of Kenya’s broader vision to modernize infrastructure, boost trade within the East African Community, and integrate more effectively with regional supply chains. Analysts suggest that the project could create thousands of jobs during construction, improve logistics efficiency, and stimulate business opportunities along the corridor.
Local communities along the highway have welcomed the development but stress the need for careful planning to minimise disruptions. Authorities have pledged to maintain environmental safeguards, ensure fair compensation where necessary, and involve stakeholders in monitoring project implementation.
The announcement marks a turning point in Kenya’s approach to large-scale infrastructure financing, highlighting a pragmatic mix of domestic planning, international partnerships, and innovative funding solutions.
