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Nairobi-Mombasa Highway Expansion: Kenya Scraps $2.7B US Firm Deal to Build 4-Lane Toll Road

Home » Transport » Roads » Nairobi-Mombasa Highway Expansion: Kenya Scraps $2.7B US Firm Deal to Build 4-Lane Toll Road

The Kenyan government has officially abandoned plans to build a brand-new, standalone expressway between Nairobi and Mombasa. Instead, the state will expand the current highway to four lanes, turning it into a tolled, access-controlled route.

According to a National Treasury Q2 project status report, the Kenya National Highways Authority (KeNHA) will execute the upgraded design across the 461-kilometer stretch. The revised strategy is engineered to minimize disruption to local communities, businesses, and feeder roads along the corridor.

The decision officially shelves a 440-kilometer, Ksh365 billion ($2.7 billion) proposal submitted by U.S. infrastructure firm Everstrong Capital. Everstrong had pitched the mega-project under the Privately Initiated Proposal (PIP) framework of the Public-Private Partnership (PPP) Act, 2021. However, the Treasury’s PPP Committee rejected the bid after it failed to meet the required evaluation criteria, advising the firm to realign its proposal toward upgrading the existing corridor instead.

The Treasury report confirms that the government has fully embraced the expansion model, listing the Nairobi-Mombasa project in its early-stage preparation phase as a road-widening initiative rather than a greenfield expressway.

To push the project forward, the Treasury published a Request for Proposals (RFP) on March 10, 2026, to procure a Transaction Advisor, with bid evaluations currently underway.

Once complete, the dual-carriageway will ease chronic congestion along Kenya’s vital transport artery. As a key segment of the Northern Corridor and the Trans-African Highway, the route links the Port of Mombasa to Nairobi and landlocked regional neighbors, including Uganda, Rwanda, South Sudan, and the Democratic Republic of Congo. The government expects the upgraded highway to streamline freight and passenger transit, boosting regional trade, tourism, and economic integration. Also, this project comes in looking similar to the one that is currently under construction, the Rironi-Mau Summit Highway.

Once complete, the dual-carriageway will ease chronic congestion along Kenya’s vital transport artery.
Once complete, the dual-carriageway will ease chronic congestion along Kenya’s vital transport artery.

Project Factsheet

Project Name: Nairobi–Mombasa Highway Expansion (A8 Corridor Upgrade)

Implementing Authority: Kenya National Highways Authority (KeNHA)

Oversight Body: National Treasury (Public-Private Partnerships Directorate)

Project Type: Brownfield Highway Expansion (Dual-Carriageway Upgrade)

Previous Status: Shelved 440 km greenfield proposal (“Usahihi Expressway”) by Everstrong Capital

Current Status: Early-Stage Preparations / Procurement of Transaction Advisor (RFP published March 10, 2026)

Project Scope and Technical Specifications

  • Total Route Length: 461 kilometers
  • Carriageway Capacity: Expanded to a minimum of 4 dual-carriageway lanes (access-controlled)
  • Tolling Framework: Closed tolling system / User-pays model
  • Route Strategy: Upgrades existing A8 alignment to minimize town disruptions and land acquisitions
  • Interchanges and Features: Grade-separated interchanges, service lanes, and town bypass integration

Procurement & Financial Model

  • Framework: Public-Private Partnership (PPP) Act, 2021
  • Procurement Stage: Bid evaluations underway for the Transaction Advisor to structure the financial, legal, and technical feasibility before procuring a private investor.
  • Revised Cost Model: Upgrading existing infrastructure reduces capital expenditure compared to the rejected Ksh365 billion ($2.7 billion) standalone greenfield proposal.

Economic and Strategic Impact

  • Logistics Corridor: Connects the Port of Mombasa to Nairobi and regional landlocked markets (Uganda, Rwanda, South Sudan, Democratic Republic of Congo).
  • Regional Networks: Key section of the Northern Corridor and the Trans-African Highway network.
  • Primary Objective: Relieves severe freight/passenger traffic bottlenecks, lowers transit logistics costs, and improves road safety along Kenya’s busiest trade route.

Nairobi-Mombasa Highway Expansion: Project Team

Contracting Authority: Kenya National Highways Authority (KeNHA)

Oversight Body: National Treasury & Economic Planning (Public-Private Partnerships Directorate & PPP Committee)

Rejected Greenfield Proponent:

  • Everstrong Capital Kenya Limited: Led by Chairman Kyle McCarter (former U.S. Ambassador to Kenya).

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