US–China Rivalry Derails Sh470bn Usahihi Expressway

One of Kenya’s most ambitious projects, a Sh470 billion highway linking Nairobi to Mombasa, has stalled once again — and this time the reasons stretch far beyond technical paperwork. 

The Nairobi-Mombasa Expressway, promised as a game-changer for East Africa’s busiest transport corridor, has become a stage for the power struggle between Washington and Beijing.

The 459-kilometre highway, also known as the Usahihi Expressway, has run into trouble just over a year after President William Ruto witnessed the deal’s signing with US firm Everstrong Capital, the company picked to lead the project.

Construction was meant to start in 2026. However, earlier last month, the Public–Private Partnership (PPP) Committee rejected the project’s development report.

In a public notice, it said the proposal “does not meet the relevant criteria and should be abandoned in accordance with Section 43(11)(c) of the PPP Act, 2021.” 

The committee said a fresh plan could be resubmitted and suggested that expanding the A8 Nairobi–Mombasa highway might be the more practical option.

However, shortly after the reports surfaced in local media, Everstrong Capital moved to clarify that the project had not been cancelled, insisting the claims were unfounded.

“False reports, the Usahihi Expressway is not cancelled,” the company said. “The project is still under active review by KeNHA, the PPP Directorate, and the National Treasury.” It argues that the rejection was a technical step rather than the end of the process.

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Observers, however, say the deeper problem lies in geopolitics. Everstrong admitted that its original partner, Portuguese builder Mota-Engil, was forced to exit after financiers objected. 

Mota-Engil has a 32 per cent shareholder in China Communications Construction Company (CCCC), the state-owned giant that built Kenya’s Standard Gauge Railway.

“Those two issues caused a little bit of friction with our lenders,” said Stanley Odhiambo of Everstrong, referring to CCCC’s stake and a tax case facing the Chinese firm. 

The financiers—mainly American, including the US Exim Bank—were unwilling to proceed while a Chinese-linked company was involved.

Everstrong has now turned to alternative contractors. It is in talks with India’s Larsen & Toubro, South Korea’s Samsung, Turkey’s IC Holding, and Italy’s Webuild. JP Morgan is the lead arranger for financing, with the US pushing for new partners with stronger balance sheets.

The standoff reflects a larger battle. China has dominated Kenya’s infrastructure for two decades, while the expressway was billed as proof of America’s renewed presence. Instead, the project has become a test of which power can secure influence over East Africa’s most important trade corridor.

For Kenya, the consequences are immediate. The Nairobi–Mombasa highway carries most of the country’s cargo. Delays to the expressway mean more congestion and rising transport costs.

As Odhiambo put it, “We are not asking for a traffic guarantee.” But without a political settlement between competing global interests, Kenya may struggle to get the project off the ground.

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