Lenders from the United States who were being tapped by Everstrong Capital as financiers of the Sh468 billion Nairobi-Mombasa expressway project were uncomfortable with the involvement of a construction company with Chinese shareholding. This was one of the main reasons why the proposed multi-billion project fell into a storm.
The construction company known as Mota-Engil exited from the proposed project at the last minute, raising concerns at the National Treasury. “When [Everstrong Capital / Usahihi Expressway Limited] went to the development phase, they came back with other contractors to meet the technical capacity but the shareholder to replace Mota was not there,” the PPP Directorate-General Kefa Seda had told local media.
According to a report that was published by a local business newspaper, Mota-Engil is owned 40 percent by the Mota family and 32.41 percent by China Communications Construction Company (CCCC). This Chinese company is the behind the China Road and Bridge Corporation which constructed Kenya’s standard gauge railway.
It has now emerged that the financiers of the U.S firm who are all American were uncomfortable at this shareholding structure. Indeed, this might have caused unease, coming in the wake of trade tensions between the United States and China that are as a result of U.S President Donald Trump’s global tariffs.
Reportedly, the exit of Mota-Engil was an act of Everstrong complying with the demands of their American lenders. According to reports, some of the prominent financiers that had been tapped for project included the USBC and the US Exim Bank.
Reports say that Everstrong Capital is seeking to bring on board contractors who include Larsen & Toubro (L&T) of India, Samsung of South Korea, IC Holding from Turkiye, and Italy’s Webuild. The company figures that these multinational firms have bigger balance sheets than Mota-Engil.
Nonetheless, a spot check on the Portuguese company shows that the multinational construction firm has footprint in major projects spanning from railways, airports, and motorways.
For instance, the company is currently undertaking the The Cuapiaxtla-Cuacnopalan highway is a concessioned road that strategically connects the center of the country with the southeast, facilitating transit between Puebla and Oaxaca in South-Central Mexico.
READ MORE: U.S firm Everstrong moves to revive Nairobi-Mombasa expressway project
Reports further state that Everstrong shall be backed by JP Morgan as the lead arranger for the project’s financing. The company claims that it has already received expressions of interest from development finance institutions (DFIs).
The Kenya National Highways Authority (KeNHA) signed an agreement with Everstrong for the construction of the expressway during President William Ruto’s visit to the United States in May 2024.
Were the Nairobi-Mombasa expressway project to be implemented and completed, the American-owned firm and their partners would charge toll fees for a period of 30 years, by which time they would be expected to recover their investment plus profit.
READ MORE: Why proposed Nairobi-Mombasa Expressway might fail to be constructed
