Government seeks Sh129.92 billion World Bank loan to upgrade 815km of roads in eight counties

An underpass along Mombasa Road, Nairobi. (Photo: KeNHA)

The government, through the Kenya National Highways Authority (KeNHA), is seeking $1 billion (Sh129.92 billion) in World Bank financing to upgrade approximately 815 kilometres of roads and install an equally long fibre optic cable network across eight counties under the Lake Victoria Basin Connectivity and Development Project.

The project, which will be funded through the World Bank Group’s International Development Association (IDA), will cover Migori, Homa Bay, Kisumu, Siaya, Busia, Vihiga, Nandi and Uasin Gishu counties.

According to a general procurement notice issued by KeNHA, the project will involve four major components aimed at improving transport connections, regional trade, digital access and the delivery of basic social services to communities along the Lake Victoria Basin transport corridor.

The first component will involve upgrading approximately 815 kilometres of selected roads and installing a fibre optic cable network of a similar length to improve the movement of people and goods as well as digital connectivity.

The second component will focus on improving regional trade and transport connections through the construction of rest stops, truck parking facilities, export aggregation hubs, logistics support infrastructure and one-stop border facilities at selected locations along the transport corridor.

The third component will involve constructing selected social and economic infrastructure facilities to improve access to basic services for communities living along the corridor.

The fourth component will support selected transport and related government institutions through capacity building and other forms of assistance to departments and agencies under the Ministry of Roads and Transport.

KeNHA indicated that the planned works will be procured through “open international competitive procurement and will include road construction, fibre optic cable-related civil works, socio-economic infrastructure, port and marine facilities, logistics centres and cross-border trade facilities”.

The Authority also plans to procure consultancy services covering feasibility studies, construction supervision, preliminary engineering designs and other technical work related to the proposed infrastructure.

Five road sections have been identified for the initial selection of contractors under design-and-build arrangements.

They include the Muhuru Bay-Sori-Nyagwethe road covering approximately 176 kilometres, Nyagwethe-Mbita-Homa Bay road covering 174 kilometres, Awasi-Katito-Otonglo-Asembo road covering 188 kilometres, Asembo-Nyamonye-Port Victoria-North Beach Mulwanda road covering 177 kilometres and Chavakali-Kapsabet-Eldoret road covering 100 kilometres.

The first four sections will undergo upgrading, while the Chavakali-Kapsabet-Eldoret section will be rehabilitated.

In preparation for the procurement process, KeNHA has announced an Early Market Engagement scheduled for Wednesday, November 18, 2026, at 10:00 am at the Barabara Plaza Auditorium, JKIA, Nairobi. The session will also allow virtual participation, with a link to be shared with confirmed participants.

The Authority said the engagement would bring together contractors, suppliers, service providers and other stakeholders in the transport infrastructure sector to share preliminary information about the project, gather views on costs, construction capacity, delivery risks and possible implementation challenges.

It will also provide an opportunity for stakeholders to discuss construction methods, project phases and access challenges to help guide procurement planning and encourage competition.

The planned road works will cover approximately 815 kilometres, including spur roads, non-motorised transport facilities and civil works associated with the fibre optic cable network. KeNHA expects to divide the works into approximately 12 separate contracts, although their number, size and composition may change.

“Procurement is expected to begin in the second quarter of the 2026/2027 financial year, between October and December 2026, subject to the necessary approvals,” it said.

The engagement is open to local and international contractors involved in highway, bridge, telecommunications, built environment and marine infrastructure works.

Engineering and design consultancy firms, professional associations, regulatory bodies, construction technology providers, geotechnical investigation firms, materials testing and surveying service providers, as well as suppliers of construction equipment and materials, have also been invited.

Interested participants have until Friday, November 13, 2026, to confirm attendance by emailing marketengagement@kenha.co.ke, indicating the number of people attending and using the subject line “Early Market Engagement: Lake Victoria Basin Connectivity and Development Project”.

Those unable to attend can submit written comments and questions through the same email address by Monday, November 16, 2026.

KeNHA clarified that the discussions would be non-binding and would not amount to an invitation to tender, prequalification or shortlisting exercise. Participation is voluntary and will neither determine eligibility nor give any firm an advantage in future procurement.