December Start for Sh465bn Usahihi Expressway

The construction of the 440-kilometre Nairobi-Mombasa Usahihi Expressway is set to begin in December, once the major fundraising initiative concludes in the second half of the year.

Everstrong Capital, the US-based infrastructure investment firm behind the project, is aiming to secure Sh129 billion from local pension funds and other Kenyans to finance the road.

The money will be raised by a group of insurance companies, investment banks, fund managers, and pension funds doing business as Pack Hunters Club.

Everstrong has entered into the Transaction Advisory and Placement Services Agreement with CPF Group’s subsidiary, CPF Capital and Advisory, which recently opened up the local fund-raising exercise. CPF Group Managing Director, Hosea Kili, explained the partnership as a milestone to the Kenyan infrastructure sector.

“This underscores the strength of strategic partnerships between local and international investors, leveraging blended capital to bring large-scale projects to life,” Kili stated.

This local fundraising marks a major step in moving the project forward, with Everstrong targeting the remainder of the Sh465 billion required for the road from external sources.

The Usahihi Expressway, once completed, will dramatically reduce travel time between Nairobi and Mombasa to just 4.5 hours, spurring economic growth along the route.

Everstrong is in the final stages of designing the road and completing feasibility studies, including environmental assessments and relocation plans for affected communities.

“By the middle of this year, we expect to submit our final proposal to the Public-Private Partnership (PPP) unit and, following approval, move towards financial closure,” said Kyle Mccarter, Chairman of Usahihi Expressway Limited.

To facilitate the development, Everstrong has set aside Sh12.9 billion for land purchase along the corridor. Landowners will also be able to invest in the project instead of equity and receive an estimated 17.5% return on investment.

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Mccarter emphasised the importance of involving local stakeholders: “We are ensuring landowners get a fair price for their property, and we’re offering many of them the opportunity to become shareholders in the road’s development.”

The highway, running parallel to the current Nairobi-Mombasa highway, will be managed by Everstrong for 30 years through concession.

Toll revenues, particularly from large commercial vehicles, that make up most of the road users, are the hope for the company.

Toll is also expected to constitute 75% of the revenues for the project.

Everstrong plans to complete the financial commitments for the expressway in the third quarter of the year, clearing the way for the commencement of construction in December.

The project will be completed in about four years, and when it is ready, the expressway will transform the region by improving transportation, commerce, and connectivity between Kenya’s capital city and largest port city.

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