HomeBusinessKenya Pushes Ahead With Chinese-Led Highway Plan

Kenya Pushes Ahead With Chinese-Led Highway Plan

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KEY POINTS


  • Kenya highway expansion drives Kenya’s financing shift.
  • Kenya deepens Chinese ties for corridor expansion.
  • Elumelu’s pledge boosts long-term project momentum.

Kenya is moving forward with a fresh infrastructure drive only weeks after Tony Elumelu pledged $1 billion to back the nation’s development goals.

The government is now turning to Chinese partners to build a $1.5 billion highway upgrade aimed at easing gridlock on one of East Africa’s busiest transport arteries.

Officials also say the project marks China’s return to large-scale construction in Kenya after a slowdown. The new model blends debt and equity, reducing reliance on traditional state-to-state loans that previously added pressure to public finances.

Kenya’s highway expansion 

According to Billionaires Africa, President William Ruto said a public-private partnership was the only workable path to delivering the expansion without waiting for annual budget allocations. Borrowing through older channels, he said, was no longer sustainable. He told crowds that the new structure would keep work moving without straining the budget.

Furthermore, the upgrade targets the main Mombasa–Nairobi corridor stretching toward Uganda and other inland markets. The first phase, valued at $863 million, places China Road and Bridge Corporation and Kenya’s NSSF in charge of converting 139 kilometers into four- and six-lane sections. A second phase, led by Shandong Hi-Speed Road and Bridge International, will widen another 94 kilometers into a six-lane highway costing $678.56 million.

Elumelu’s role in Kenya’s plans 

The Chinese-backed expansion follows Elumelu’s November pledge, which boosted Kenya’s bid to draw more private capital for transport, energy, and agricultural projects. Elumelu, who chairs UBA, Transcorp, and Heirs Holdings, said he intends to also support sectors with long-term growth potential.

His firms already deploy significant investments across Africa in power, hospitality, and finance. Ruto praised the commitment, saying it shows African investors are now willing to take a bigger role in shaping the region’s economic rise. Furthermore, he said Kenya’s ability to attract such partners signals growing confidence in its long-term outlook.

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