Funding issues – delays to Kenya’s major highway project?

Concerns over financing are delaying progress on Kenya’s massive highway connection project. The new highway between the capital Nairobi and the country’s premier port of Mombasa is expected to cost in the region of US$3.5 billion. Construction is being managed by the US contractor Bechtel, which is sourcing suitable funding from private firms and has considerable experience of building highways in developing nations. But the sheer scale of this project, one of the country’s largest since its independence,
April 17, 2018 Read time: 2 mins

Concerns over financing are delaying progress on Kenya’s massive highway connection project. The new highway between the capital Nairobi and the country’s premier port of Mombasa is expected to cost in the region of US$3.5 billion. Construction is being managed by the US contractor 4138 Bechtel, which is sourcing suitable funding from private firms and has considerable experience of building highways in developing nations. But the sheer scale of this project, one of the country’s largest since its independence, looks to be placing a massive burden of debt on the Kenyan economy.

The highway is important for Kenya as well as neighbouring East African nations as the 473km link will provide a faster four lane connection between the two cities. This will speed transport inland from the busy port and help reduce costs, encouraging trade across the region. However, while Kenya’s economy is the most buoyant in East Africa, the cost of project will combine with others already in progress to boost the country’s debt ratio significantly, with some analysts suggesting this could be as high as 58% of GDP.

The financing should be fully in place by June of 2018, with the firm aiming to complete construction by 2024.

Finance & Funding

For more information on companies in this article

Related Content

  • French infrastructure to be privatised?
    July 4, 2012
    How will the deep cuts hitting France's national budget affect French roads and highways? Gordon Feller discusses France has one of the most modern transport systems in Europe, the result of decades of public spending on the sector as well as other infrastructure. The government historically has awarded contracts to build infrastructure to French construction and engineering companies, some of which are now among the world's largest contractors. Among other achievements, France's infrastructure programme re
    Read More
  • European transport funding until 2024
    November 8, 2019
    The European Bank for Reconstruction and Development (EBRD) is setting out its new transport development plan for the coming five years. The EBRD has approved a new Transport Sector Strategy for the 2019-2024 period, intended to refine the previous strategy. The aim is to work in a more focussed way on the emerging green economy and climate targets in a sector that, while slow to change, is a catalyst for economic and inclusive growth. Since the EBRD’s previous strategy came into force, global policymak
    Read More
  • INTERMAT organisers see strong growth in construction
    December 12, 2017
    The organisers of the upcoming INTERMAT trade show for construction and infrastructure see strong growth for the sector. The INTERMAT organisers have unveiled the first Construction Industry Observatory report, which was produced in association with French government agency, Business France. The report provides construction-equipment manufacturers with strategic data on 12 countries in the EMEA zone. These nations have been selected for their planned investment levels in infrastructure, which total €1,600
    Read More
  • India rushing to improve its highway system
    February 9, 2012
    Despite the world economic slowdown, India still seems in a rush to improve its highway system as Patrick Smith reports. Later this year India will be seen by hundreds of millions worldwide when the country's capital New Delhi hosts its biggest event ever.
    Read More

Highlighted Content