US private equity firm–Everstrong Capital targets to break ground for the 459 kilometre–464.8 billion Nairobi-Mombasa Expressway in quarter one of 2026 subject to the project's timely approval.
The American company with presence in Kenya formally submitted a comprehensive feasibility study to KeNHA on Monday evening, affirming the Usahihi Nairobi to Mombasa Expressway’s full readiness for investment and execution.
Of the $3.6 billion (Sh464.8 billion) needed to finance the project, $1 billion (Sh 129.1 billion) will be raised locally by pension funds, fund managers, investment banks, insurance companies and commercial banks.
CPF Capital & Advisory Ltd., a subsidiary of CPF Group is leading the fundraising for the Usahihi Expressway Project through the PACK Hunters Club (PHC).
PHC is described as an innovative consortium that brings together the Association of Pension Trustees and Administrators of Kenya (Aptak), the Fund Managers Association (FMA) and the Kenya Association of Stockbrokers and Investment Banks (Kasib).
The consortium aims to raise capital through the financial markets, setting a model for future infrastructure financing in Kenya and the region.
“This expressway is more than just a road. It is a promise of opportunity, safety and national growth, serving as a model of a public-private-partnership done right in line with Kenya’s leadership’s commitment to not burden the taxpayers with more debt,” CPF managing director and CEO Hosea Kili said.
The Usahihi Expressway—named after the Kiswahili word for "done correctly" is a four-lane dual carriageway linking Nairobi and the port city of Mombasa.
As a PPP, the road will be tolled hence no financial risks for the government and the public, with the developers overseeing financing, construction, tolling, operation and maintenance for a 30-year concession period, including a construction time of 3-4 years.
“We expect to get through with the PPP process and approvals in the next two months and hope to get financial close by end of this year to pave way for the ground breaking in early 2026,” former US Ambassador to Kenya, Kyle McCarter, said.
McCarter who is also partner at Everstrong Capital and chairman, Usahihi Nairobi-Mombasa Expressway, said five contractors have already been identified for the project which will include land acquisition with about $100 million (Sh12.9 billion) going into purchases and compensation.
The expressway which is designed to have seven toll stations will see motorists pay between Sh12 and Sh13 per kilometre.
This means it would cost a motorist an upward of about Sh5,967 to use the road from end-to-end.
Logistics firms hauling cargo between the Port of Mombasa and Nairobi will have direct accounts where they can pay in US dollar monthly.
The current Mombasa-Nairobi Highway will remain operational for those who don’t wish to use the toll road, which is expected to cut the transit time between the two cities from about 10 hours 30 minutes to about four hours and thirty minutes.
The expressway will also feature rest stops, wildlife observation points, electric vehicle charging infrastructure powered by renewable energy sources, and strategically located overpasses and underpasses for animal migration across Tsavo East and West national parks.
The feasibility study is expected to go through the PPP unit at the National Treasury which will then give a report to the Roads and Transport CS who will intern table it before Cabinet.
It is also likely to go through the Parliament’s Public Investments Committee before final approval.
The handover of the 2,300 pages feasibility study that covers technical, financial, legal, environmental and economic analysis sets foundation for what is expected to be one of the biggest road infrastructure project in the region, redefining mobility, trade and opportunity across East Africa which is served by the Northern Corridor that runs between the Port of Mombasa and the hinterland.
Everstrong Capital, along with lead arrangers JP Morgan and Standard Bank, are organising the lionshare of the Sh464.8 billion in equity and debt.
First steps in private financing comes from private investors, US Trade Development Agency and other African development agencies.
Further, US government support is expected from US Eximbank and US Development Finance Corporation.
Collectively, the US government agencies are expected to provide approximately $1.1 billion (Sh142 billion) for the project.
Kurrent Technologies, a key partner in the project, plans to partner withTVETs to create opportunities for youth, women and persons with disabilities, as part of the wider plans to ensure local content and job creation.
“We are working with Everstrong to maximize Kenyan content in the Usahihi Nairobi to Mombasa Expressway by developing a local content plan,” COO Sanjay Gandhi said.
