The government of Kenya has dropped the mega Sh468 billion Nairobi-Mombasa Expressway project. The Usahihi Expressway project was being backed by a firm from the United States known as Everstrong Capital. It was being touted as a landmark infrastructure project in Africa by a company from the United States.
The Nairobi-Mombasa Expressway project was terminated after a meeting by the public-private-partnership (PPP) committee of the National Treasury.
“The PPP Committee determined that the proposal does not meet the relevant criteria and should be abandoned in accordance with Section 43 (11)(c) of the PPP Act, 2021,” a notice by the National Treasury states.
After the cancellation, the committee directed the Kenya National Highways Authority (KeNHA) to expand the existing highway.
The first signs of trouble for the Usahihi Expressway project emerged in early July when it was revealed that the committee had rejected the Nairobi-Mombasa Expressway plan.
According to the committee, the project development report (PDR) was presented as a greenfield project. However, the PDR allegedly had gaps on land use and land acquisition for the project. A PDR contains a comprehensive overview of the project, and details the project’s development including its goals, scope, and potential risks.
“The proposal may, however, be resubmitted to the committee for fresh determination in line with Section 43 (12) of the PPP Act, 2021,” the committee had stated.
Everstrong Capital submitted the project’s feasibility study in May 2025. “In a landmark moment for Kenya and African infrastructure at large, Everstrong Capital has officially submitted the full feasibility study for the 459km Usahihi Expressway to the Kenya National Highways Authority (KeNHA),” the company had announced.
“The handover represents the most comprehensive and transparent study of its kind in Kenya’s history. This milestone not only affirms the project’s full readiness but also marks a critical shift from vision to execution.”
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Everstrong had been looking to raise up to Sh129 billion from the local market, including from local banks and local pension funds. The developer would then raise Sh258 billion from external markets to bring the total estimated construction cost to Sh465.12 billion. Once complete, the Expressway would have operated on a toll-basis.
