The Kenya National Highways Authority (KeNHA) has said that two state-backed Chinese contractors have started work on a US$1.5 billion highway expansion in Kenya, after a deal for a Vinci-led consortium to build the project was cancelled earlier 2025. 

The project linking the capital Nairobi to the Rift Valley city of Nakuru is split into two phases. The first involves China Road and Bridge Corporation expanding two existing stretches of a single-lane, 139-km (86-mile) highway into four- and six-lane dual-carriage roads for US$863 million. The second will see Shandong Hi-Speed Road and Bridge International expand an existing single-lane, 94-km stretch of highway into a six-lane carriageway for US$679 million. The developments are being carried out through a public-private partnership structure, with financing for both segments arranged as 75% debt and 25% equity. In the initial phase, Kenya’s National Social Security Fund (NSSF) will provide 45% of the equity contribution. The debt portion is anticipated to be supplied by Chinese commercial banks along with government-backed institutions such as the Export-Import Bank of China.

Construction is due for completion in 2027, followed by a 28-year concession to collect tolls.