The Kenya-Tanzania road project remains a planned transport investment aimed at strengthening cross-border connectivity and regional trade. Kenya initially expected the World Bank to finance the highway, but delays prompted the government to seek Chinese financing.
Treasury Cabinet Secretary John Mbadi announced the financing shift in May 2025. He said Kenya had sought a KSh72 billion concessional loan from China for several major road projects.
The proposed KSh72 billion facility translates to approximately $557 million at an exchange rate of KSh129.3 per US dollar. However, the facility would cover several roads, not only the Kenya-Tanzania link.
Therefore, the 124km road does not have a separately confirmed construction cost under the proposed Chinese financing package. The government also has not announced a confirmed construction start date.
Kenya-Tanzania Road Project targets regional connectivity
The project forms part of Kenya’s efforts to improve transport infrastructure toward the Tanzanian border. The investment could strengthen trade between the two countries and improve movement along regional corridors.
The government originally planned to finance the road through the World Bank. However, Treasury cited delays in disbursing funds as a reason for considering Chinese financing instead.
Mbadi said the government discussed the proposed Chinese financing with Transport Cabinet Secretary Davis Chirchir. The discussions covered the road and other priority transport infrastructure.
The proposed facility would also support two additional highways. Those roads would connect counties in the South Rift and North Rift with the wider Lake Victoria basin.
Consequently, the KSh72 billion package represents a broader road-building program rather than dedicated financing for the 124km corridor.
The financing proposal also reflects Kenya’s continued search for concessional infrastructure funding. The government has faced pressure to balance infrastructure development with rising debt obligations.
Mbadi said China could provide the proposed facility at an interest rate below four percent. He also described both the Chinese and World Bank facilities as concessional loans.
Kenya-Tanzania road project supports East African trade
The proposed highway would strengthen a wider network connecting Kenya and Tanzania. Such infrastructure can improve border access, reduce transport costs and support regional commerce.
The East African Community identifies the Taveta-Holili connection as an important link between the Central and Northern Corridors. The regional road program includes infrastructure around Taveta in Kenya and Holili in Tanzania.
However, existing regional programs should not be confused with the newly proposed 124km project. The EAC describes an earlier multinational road program involving a 90km Taveta-Mwatate section and other Tanzanian works.
The distinction matters because several Kenya-Tanzania road projects have progressed under different financing arrangements.
For example, the African Development Bank previously approved financing for the Arusha-Holili-Taveta-Voi corridor. That program covered 157.5km and received substantial support from the bank.
The proposed 124km project therefore represents a separate financing proposal reported by Kenya’s Treasury in 2025.
The Project remains at planning stage
As of August 2026, publicly available information does not confirm that Kenya has completed the proposed KSh72 billion Chinese loan agreement for the road.
The latest confirmed information still traces the proposal to Treasury’s May 2025 announcement. Consequently, the project should remain classified as planned rather than under active construction.
This status also distinguishes the project from Kenya’s Rironi-Mau Summit Highway, which has already entered construction. The Rironi-Mau Summit Highway is advancing as a major Northern Corridor upgrade with Chinese contractors delivering different sections.
The two projects demonstrate Kenya’s broader strategy of expanding strategic road infrastructure. The Rironi-Mau Summit Highway focuses on the Nairobi-western Kenya corridor, while the proposed Kenya-Tanzania link would strengthen cross-border connectivity.
The government will need to clarify the final financing structure, project scope, contractor and implementation schedule before construction can advance.
Also, in another crossborder multinational roads projects, Kenya is advancing on the development of the Kenya-Uganda Multinational Expressway. The development of such infrastructure are expected to bring economic integration in the region and promote trading activities.
Reported on May 24, 2025
Kenya’s government is on the verge of securing a Ksh72 billion loan from China. This loan will be utilizedfor the construction of major roads projects. The road project are inclusive of the 124-kilometre Kenya-Tanzania Road.
Kenya’s Treasury Cabinet Secretary John Mbadi, who spoke on Wednesday, May 14, stated the highway was initially planned to be constructed with funds from the World Bank.
Also read: 454-Kilometre Kenya-Tanzania Road to be Completed in 2024
Other Roads to be Constructed by the Loan
According to the Treasury CS, a portion of the loan would also be used to construct other key roads within the country. These roads include two major highways. The highways are set to link counties within the Rift Valley region and the greater Lake Victoria basin.
“Just recently, the Transport CS revealed plans to construct two roads that would be financed by the World Bank. One of the roads is from the South Rift and connects Awendo, and the other one is from the North Rift,” Mbadi stated.
He went on: “So these roads were meant to be funded by the World Bank. However, yesterday we revealed to China about our plan to construct additional roads. We sought a total of Ksh72 billion from China for the roads.”
Concessional Loans for the Roads
During the interview, Mbadi made it clear that the two loans from both the World Bank and China would be concessional. A concessional loan is a credit made on more favourable terms than the borrower could obtain in the market.
“These loans that I am talking about are concessional. The World Bank sometimes awards us a loan that is even at 1 per cent. Also, the Chinese are willing to award us the loan at an interest rate below 4 per cent. So we will negotiate with them,” Mbadi clarified.
Also read: 193-Kilometer Kenya-South Sudan Road Construction Funding Secured
Project Fact Sheet
Name: Kenya-Tanzania Road Project
Type: Cross-border road infrastructure
Proposed length: 124 kilometres
Primary objective: Improve cross-border transport and regional trade
Proposed financing package: KSh72 billion
Approximate package value: $557 million
Proposed financier: China
Original financier: World Bank
Financing type: Concessional loan
Proposed Chinese interest rate: Below 4%
Construction status: Planned
Route: Kenya-Tanzania cross-border corridor
Regional importance: Supports East African transport and trade connectivity
Additional roads under proposed financing: South Rift and North Rift corridors
Government agency: National Treasury
Transport authority: Kenya National Highways Authority (KeNHA)
Project Team
Owner: Government of Kenya
Financing authority: National Treasury
Transport authority: Ministry of Roads and Transport
Roads implementing agency: Kenya National Highways Authority (KeNHA)
Proposed financier: Chinese government/Chinese financing institutions
Original proposed financier: World Bank
Regional coordination: East African Community
Tanzanian counterpart: Government of Tanzania
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