Everstrong Capital, a US-based infrastructure company and CPF Capital & Advisory Limited have signed a project agreement to raise Ksh129 billion for the construction of the Nairobi-Mombasa Expressway.
The 440-kilometre highway connecting Mombasa and Nairobi is expected to cost Ksh464 billion. Representatives from Everstrong Capital and CPF revealed plans to secure the funding through loans from pension funds, investment banks, and insurance companies.
According to Everstrong Capital, the plan represents one of Africa’s largest infrastructure loans and marks a significant milestone in securing private sector investment to advance Kenya’s infrastructure development.
“For the first time in Africa, the local pension funds and other financial institutions are investing over $1 billion in their infrastructure,” said Ambassador Kyle McCarter, Chairman at Usahihi Expressway Limited.
“Usahihi exemplifies my personal belief that Africa should move from aid to trade along the pathway to self-reliance. Everstrong, lead sponsor of the Usahihi Consortium, looks forward to partnering with CPF and Kenya to build the prototype expressway of the future,” he added.
The initiative is supported by leading industry organizations, including the Fund Managers Association, the Kenya Association of Stockbrokers, the Capital Markets Authority (CMA), the Kenya Bankers Association (KBA), and the Association of Kenyan Insurers (AKI).
Besides the construction of the highway, the stakeholders also seek to address other critical infrastructure needs in the country including airport enhancements through the Public Private Partnership (PPP).
The expressway dubbed the Usahihi, is expected to be the largest toll road in Africa and focuses on sustainability, featuring wildlife corridors, electric vehicle charging and renewable energy infrastructure.
The announcement for the construction of the highway was first mentioned in May last year during President William Ruto’s state visit to the United States.
The expressway is expected to reduce the travel time between the two cities to at most 5 hours from the usual 10 to 12 hours.