Kenya turns to China on $1.5b highway after Elumelu’s $1b

Kenya is pressing ahead with a new round of infrastructure spending, less than a month after Nigerian businessman Tony Elumelu pledged $1 billion to support the country’s development plans. With demand for better roads rising and public finances stretched, the government has now turned to Chinese partners to build a $1.5 billion highway expansion meant to ease congestion on one of East Africa’s busiest corridors.

The government confirmed that two Chinese state firms have begun work on the dual-carriage project, marking China’s return to large construction jobs in Kenya after a slowdown in recent years. Officials say the deal reflects a shift in how major projects are financed, with China and Kenya sharing costs through a mix of debt and equity rather than relying solely on state-to-state loans that previously raised concerns over rising obligations.

Kenya advances $1.54 billion corridor upgrade

President William Ruto said the public-private partnership was the only practical way to deliver the project without waiting years for government allocations. Borrowing through traditional channels, he added, was no longer viable because of tight fiscal space. Speaking at the launch ceremony, Ruto told crowds that the partnership would keep construction moving without adding heavy pressure to the national budget.

The project will upgrade a key route linking the port of Mombasa to Nairobi and onward to Uganda and other landlocked countries. The first phase, valued at $863 million, will see China Road and Bridge Corporation work with Kenya’s pension fund, NSSF, to convert 139 kilometers of single-lane road into four- and six-lane sections. The second phase, led by Shandong Hi-Speed Road and Bridge International, will convert another 94 kilometers into a six-lane highway at a cost of $678.56 million.

Elumelu champions Africa’s growth with Kenya

The Chinese-backed expansion comes shortly after Elumelu’s November 12 commitment, which strengthened Kenya’s push to secure private capital for energy, transport, and agricultural projects. Elumelu, who chairs United Bank for Africa Plc, Transcorp Group and Heirs Holdings, said his goal is to support sectors that can deliver long-term growth.

His companies already invest heavily across Africa in electricity, hospitality, and financial services. Ruto welcomed the pledge, calling it a sign that Africa’s business community is ready to shoulder a larger share of development spending. He said Elumelu’s willingness to invest at scale reflects a wider confidence that Kenya can attract partners who want to build and participate in the region’s economic rise.