The government is looking for new investors to finance the expansion of the Nairobi-Mombasa Highway after dropping plans linked to US infrastructure company Everstrong Capital.
The 461-kilometre highway is among 13 priority projects that Kenya is presenting to investors during the 2026/2027 financial year.
Public-Private Partnership (PPP) Directorate Director General Kefa Seda announced the plans on Tuesday, September 15, during the Global Infrastructure Cooperation Conference (GICC) 2026 in Seoul, South Korea.
Seda said the government had prepared a pipeline of projects covering transport, energy and other strategic sectors for potential investors.
“Our country is taking a substantive pipeline of investment opportunities to the market across transport, energy and other strategic sectors, with 13 priority projects identified for active market engagement in FY2026/2027,” he said.
The Nairobi-Mombasa Highway was presented alongside the Mau Summit-Malaba Road as part of the projects seeking private sector financing.
Government changes highway plan
The search for new investors comes after the government changed its plans for the Nairobi-Mombasa route.
Instead of constructing a completely new expressway, the government now intends to upgrade the existing 461-kilometre highway from two lanes to four lanes.
The upgraded road is also expected to become an access-controlled tolled highway.
The revised plan was announced after the government abandoned a proposal by Everstrong Capital to develop a new Nairobi-Mombasa Expressway.
Everstrong had proposed the Usahihi Nairobi-Mombasa Expressway as a privately financed PPP project.
The proposed road was expected to have between four and six lanes and would have been privately operated for 30 years.
Government seeks long-term financing
Seda said Kenya was now seeking a financing model that could attract long-term capital while allowing more investors to participate in infrastructure projects.
“Unlocking this pipeline requires a financing ecosystem capable of mobilising long-term patient capital and broadening investor participation in infrastructure development,” he said.
He added that the proposed National Infrastructure Fund would work alongside the PPP framework to create additional financing options.
The fund is expected to provide avenues for domestic investors, including pension funds, insurance companies and collective investment schemes, to participate in infrastructure development.
The Nairobi-Mombasa Highway remains one of Kenya’s major transport corridors, connecting the capital to the Port of Mombasa and serving traffic moving between the two cities and other parts of the country.
