The government has declined a proposal to construct the Nairobi–Mombasa (Usahihi) Expressway under a Public-Private Partnership (PPP) arrangement.
In a public notice issued on August 12, the government explained that the proposal did not meet the established evaluation criteria and has instead directed the Kenya National Highways Authority (KeNHA) to focus on expanding the existing A8 highway.
The project, submitted by a US-based company, involved designing, building, financing, operating, maintaining, and eventually transferring a 459-kilometre expressway from Mlolongo in Machakos County to Bonje in Mombasa County.
The plan aimed to reduce travel time between Nairobi and Mombasa but was halted after reviews by the PPP Committee and the National Treasury.
According to a joint disclosure by KeNHA and the Public Private Partnership Directorate, the proposal had initially received conditional approval to proceed to the Project Development Phase (PDP).
At this stage, the proponent was required to conduct feasibility studies and submit detailed reports for evaluation.
KeNHA submitted its evaluation report to the PPP Directorate in May 2025.
The report was presented to the PPP Committee during its 54th ordinary meeting on July 2, 2025.
After assessing the technical, financial, and legal components, the committee concluded that the proposal did not satisfy the benchmarks outlined under Section 43(11)(c) of the PPP Act, 2021.
“The committee determined that the proposal does not meet the relevant criteria and should be abandoned,” the statement reads.
The notice added that KeNHA has been instructed to restructure the project, focusing on expanding the existing highway rather than constructing a new expressway.
Once redesigned, the project may be resubmitted for further consideration in accordance with Section 43(12) of the Act.
The government emphasised that the decision was made in the public interest, noting that large-scale PPP projects must demonstrate value for money, technical feasibility, and environmental sustainability before approval.
“This disclosure is made in line with the provisions of the PPP Act, 2021, and the government’s commitment to transparency in all its initiatives,” the statement said.
KeNHA Director General Luka Kimeli assured the public that the agency will continue to comply fully with legal requirements in all infrastructure projects.
“KeNHA remains committed to delivering road projects that meet high standards while ensuring prudent use of public resources,” he said.
The A8 highway, a key trade route between Nairobi and Mombasa, is already undergoing upgrades in sections, and the new directive is expected to integrate these works into a wider expansion plan.
The decision concludes months of speculation regarding the Usahihi Expressway plan, which had generated public discussion over potential tolls, environmental concerns, and funding mechanisms.
