By Fridah Mbuvi, June 12, 2026
The government is increasingly turning to private capital to bridge a KSh647 billion annual infrastructure financing deficit, with the 2026/2027 budget placing renewed emphasis on Public-Private Partnerships (PPPs) to deliver major transport projects without piling additional pressure on public debt.
President William Ruto’s administration is seeking to reduce dependence on external borrowing and tax-financed projects by attracting private investors to finance and operate strategic highways under long-term concession arrangements.
Among the flagship projects is the Nairobi-Nakuru-Mau Summit Highway, estimated to cost between KSh184 billion and KSh200 billion. The project will be undertaken through a partnership involving China Road and Bridge Corporation and the National Social Security Fund, with investors expected to recoup their investments through toll charges over a 30-year period.
The Nairobi-Mombasa Expressway, valued at between KSh455 billion and KSh464 billion, is set to be developed by U.S.-based Everstrong Capital in partnership with CPF Group Kenya. Construction is expected to commence in 2026, with the road projected to cut travel time between Nairobi and Mombasa from about 10 hours to approximately four and a half hours.
Plans are also underway to upgrade the Mau Summit-Eldoret-Malaba highway into a high-capacity corridor extending to the Uganda border. The KSh130 billion project has received support from the Asian Infrastructure Investment Bank, which is financing the feasibility study. Interested investors have until June 23, 2026, to submit expressions of interest.
To support the projects, the National Treasury is implementing alternative financing mechanisms outlined by Treasury Cabinet Secretary John Mbadi. These include the establishment of a National Infrastructure Fund, which will be capitalized through proceeds from the Kenya Pipeline Company initial public offering and a partial sale of Safaricom shares to Vodacom.
The government also plans to issue asset-backed bonds secured against revenues from the Road Maintenance Levy, Railway Development Levy and Affordable Housing Levy. The proceeds will be used to clear pending road bills and support the extension of the Standard Gauge Railway to western Kenya.
Beyond roads, the administration is preparing to bring private investors into the management of cargo operations at the ports of Mombasa and Lamu. Similar models are being considered for major dam projects and large-scale irrigation schemes aimed at strengthening agricultural productivity.
The strategy reflects the government’s broader effort to close infrastructure financing gaps while accelerating delivery of key projects considered critical to economic growth and regional connectivity ahead of the 2027 General Election.
