China on Brink of Sh180bn Highway Deal with Kenya

Kenya and China are advancing talks to finalise deals for the funding and construction of the Rironi-Mau Summit Road and to extend the Standard Gauge Railway to the Ugandan border.

The progress was revealed when President William Ruto met with Li Xi, a senior member of the Communist Party of China (CPC), during his visit to Nairobi on Monday.

According to the President’s office, Dr Ruto confirmed that discussions were well-advanced regarding the construction of the Rironi-Mau Summit Road, a significant infrastructure project originally awarded to a French consortium.

The 233km road that stretches from Rironi to Mau Summit was initially part of a $1.4 billion contract with French firms under the previous Kenyan administration.

However, upon assuming power in September 2022, the administration of President Ruto cancelled the deal citing the high costs of the project.

Besides the Rironi-Mau Summit Highway, Dr Ruto also mentioned the ongoing negotiations towards the extension of the SGR from Naivasha to Kisumu and on to Malaba.

The SGR project, partially funded by China Exim Bank, had previously stalled after the completion of its first phase between Mombasa and Naivasha, with the extension to Malaba halted due to a lack of a new viability study.

“Swift project implementation will create jobs, especially for our youth and women,” Dr Ruto said following his meeting with Li, underlining the potential benefits of the two projects.

Mr Xi’s visit also included a tour of the SGR Nairobi terminus, where he held talks with Kenya’s transport ministry officials about the possibility of funding the extension to Malaba.

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A preliminary project assessment meeting was held, clearing the path for the construction of the 475km extension, estimated to cost $5 billion. The project is scheduled to begin in 2025.

According to Mr Xi, China is committed to assisting Kenya in implementing its Vision 2030, especially in sustainable development, including education, health, and environmental.

“China will cooperate with Kenya in supporting projects aligned with Vision 2030,” he said.

Mr Xi’s visit also saw discussions with Kenya’s ruling United Democratic Alliance (UDA) party about establishing a leadership academy. This initiative is part of China’s broader strategy to strengthen ties with African political parties through training programmes.

The CPC’s growing influence across Africa, particularly in its relationships with political parties like Kenya’s UDA, reflects a strategic push to build relationships with African leaders.

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