Projects

Korean Firms Battle for Sh11bn Nairobi Traffic Deal

The project is funded by EDCF via the Export-Import Bank of Korea.

Updated on

July 2, 2026

South Korean contractors are fighting for a multi-billion-shilling contract to install smart traffic lights, automated Vehicle Enforcement Systems (VES), CCTV cameras, vehicle detectors and Variable Message Signs (VMS) across key Nairobi corridors.

The Kenya Urban Roads Authority (KURA) is rolling out the project, funded through a Sh10.8 billion loan from Seoul’s Economic Development Cooperation Fund for the second phase of Nairobi’s Intelligent Transport System.

Under the financing terms, the contract is reserved exclusively for South Korean firms, making them the only eligible bidders for the high-value infrastructure rollout.

“The design-build works, including commissioning and test operation, shall be completed within a period of 30 months from the commencement date,” KURA said in the tender documents.

“Following the taking over of the Works, the [successful] contractor shall provide and deploy experts for a period of four years to provide operational support and to assist the employer in achieving sustainable operation and maintenance of the works.”

In May 2022, Korean consortium led by Cheil Engineering Co., Ltd was awarded to implement phase one of the Nairobi Intelligent Transport System (ITS) project for Sh548 million.

According to the Kenya Urban Roads Authority (KURA), the Koreans will guide the execution of the first phase of the Nairobi ITS and Junction Improvement project at Sh548 million.

The consortium was required to assist in bid evaluation, negotiations, supervision of detailed engineering design, construction of the Traffic Management Centre (TMC), and preparation of operations and maintenance.

Based in Seocho, South Korea, Cheil is a well-known provider of engineering consultancy, architecture planning, and construction supervision services.

The company has previously carried out consultancy services for feasibility studies for advanced traffic improvement projects in Mozambique and Ethiopia.

The Intelligent Transport System applies artificial intelligence to manage urban traffic. It uses smart cameras, variable timing traffic lights, and a control centre to monitor and control traffic, easing the burden on traffic police officers.

The system can study traffic flow data in real-time, thereby allowing longer traffic flow on roads with the most traffic, thus minimising unnecessary waiting time.

Electronic police system

The smart traffic control system also comes with a mobile electronic police system that allows flexible monitoring of general traffic conditions.

In January 2021, Kura said the design of the TMC had been completed and preparations were underway for ground-breaking works for the facility that will be set on a 10-acre piece of land in the City Cabanas area on Mombasa Road.

The TMC will have several floors housing various stakeholders involved in traffic management in Nairobi, including traffic police officers, city engineers, and system specialists who will monitor and act on traffic flow data in real time.