Ruto secures a Sh477 billion contract for a six-lane new Usahihi Expressway

An agreement for Sh477 billion ($3.6) billion has been concluded between the Kenya National Highways Authority (KeNHA) and Everstrong Capital LLC to build a new expressway that will connect Mombasa and Nairobi.

During President William Ruto’s official visit to the US, this agreement was inked.

The 440 kilometers of the Usahihi expressway—whose name means “correctly” in Swahili—will include four to six lanes.

The road will cut through a sizable wildlife reserve, establishing a vital link between Mombasa, the port city, and Nairobi.

For numerous economies in East Africa, this route is an essential entry point.

The new road will supplement the two-lane public road that is currently in place as well as the China Exim Bank-financed railroad.

President Ruto is actively working to increase private investment in Kenya during his visit to Washington.

This is the first official visit by an African leader to the US in sixteen years, underscoring US efforts to fortify ties with the continent in the face of increasing influence from China and Russia.

According to an official statement, “The construction of the Usahihi Expressway poses no financial risks to the Kenyan government, as it is structured to operate independently from the government of Kenya’s balance sheet and is projected to be financing self-sustaining.”

The withdrawal of Bechtel Corp. from a $3.5 billion project in 2017 was the result of a previous deal with the San Francisco-based corporation, which is followed by this new project.

The corporation decided to only function as a contractor rather than construct and run the route.

Comparably, feasibility studies were carried out by Korea Overseas Infrastructure & Urban Development Corp. for a highway with an approximate budget of $1.5 billion.

During President Ruto’s US tour, more noteworthy investments were disclosed in addition to the expressway contract.

A new data center in Kenya is set to get a $1 billion investment from Microsoft Corp. and G42, a prominent artificial intelligence company based in the United Arab Emirates.

Additionally, Coca-Cola Co. disclosed a $175 million investment in its regional business.

It is anticipated that the US International Development Finance Corp., which lends money to private companies instead of governments, will announce a number of hundred million dollars in fresh investments in Kenya, bringing its whole investment portfolio to more than $1 billion.

Additionally, President Ruto is promoting the extension of the African Growth and Opportunity Act (AGOA), a trade initiative that allows qualifying sub-Saharan African nations duty-free access to the US market.