KeNHA Turns to Local Banks for KSh300 Billion Nairobi-Mombasa Highway Expansion

The government has opened discussions with a local financial institution to help fund the planned expansion of the Nairobi-Mombasa Highway, signalling a new approach to financing one of Kenya’s most significant road infrastructure projects.

The Kenya National Highways Authority (KeNHA) is exploring domestic financing options as it seeks to upgrade the busy 460-kilometre highway, which connects Nairobi to the coastal city of Mombasa.

KeNHA Director General Luka Kimeli met officials from a local bank on Tuesday, November 3, 2026, to discuss possible funding partnerships for several major road projects, including the proposed expansion of the Nairobi-Mombasa highway.

The discussions come as the government seeks alternative ways of raising the billions of shillings required to improve the country’s road network.

In a statement following the meeting, KeNHA highlighted the importance of strategic partnerships in financing infrastructure projects.

The authority said the engagements were aimed at mobilising resources to connect rural economies, open up trade routes and improve the movement of people and goods across the country.

Apart from the Nairobi-Mombasa highway, the meeting also considered financing for the 253-kilometre South Rift-Lake Region Gateway Corridor under the Roads for Rural Economic Development Project.

Another proposed project is a 500-kilometre ring road under the Lake Victoria Basin Development Roads programme.

KeNHA said the discussions focused on securing resources to advance the projects, improve connectivity and create additional opportunities for trade and economic growth.

The latest development comes about a month after the National Treasury announced plans to identify a firm to help prepare and assess the proposed Nairobi-Mombasa highway expansion.

The selected firm is expected to examine traffic volumes, engineering requirements, environmental and social considerations, as well as the estimated construction costs.

The assessment will help establish whether the proposed project is technically and financially viable before implementation proceeds.

Under the proposed plan, the existing two-lane highway would be expanded to at least four lanes to accommodate growing traffic between Nairobi and the Coast.

The project is also expected to introduce controlled entry and exit points, alongside a tolling system through which motorists would pay to use the expanded road.

Treasury documents indicate that the government intends to incorporate cost-effective engineering designs to minimise disruption to communities and businesses located along the highway.

The designs are also expected to maintain local connectivity while increasing the road’s capacity to handle more vehicles.

Initial estimates placed the cost of expanding the entire highway at approximately KSh300 billion.

However, the final project cost will depend on the technical assessments, engineering designs and financing arrangements adopted by the government.

The latest discussions with a local bank also mark a shift from an earlier financing proposal involving US infrastructure firm Everstrong Capital.

The company had proposed expanding the Nairobi-Mombasa highway using private capital under a public-private partnership arrangement.

However, the National Treasury’s Public Private Partnership Committee rejected the proposal in May 2025 after determining that it did not satisfy the requirements of the Public Private Partnerships Act, 2021.

The government has since continued exploring ways to implement the ambitious project, with the latest engagement suggesting that local financial institutions could play a role in raising the required funds.

If implemented, the expansion would increase the highway’s capacity and introduce toll charges, changing how motorists access one of the country’s busiest transport corridors.

For now, the discussions with the local bank represent a financing engagement rather than a confirmed funding agreement.

The government is yet to announce the final financing structure, construction commencement date or implementation timeline.