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Kenya Inks Sh24bn Deal With China for Smart Traffic Lights

The system will reduce the need for traffic police to manually control intersections.

Updated on

December 1, 2025

Smart traffic lights will be installed as part of the ITS project. (Photo: Courtesy)

Kenya has signed a Sh24 billion loan agreement with the China EximBank to fund a new Intelligent Transport System (ITS) in Nairobi, aiming to ease traffic congestion in the city.

The government says the Nairobi ITS project, which will equip 25 roundabouts with lights, cameras, and sensors, is key to Kenya’s integrated transport management plan.

Once operational, the system will monitor traffic flow in real time, optimise signal timings, and reduce the need for traffic police at major junctions.

National Treasury Cabinet Secretary John Mbadi signed the deal on Wednesday in Nairobi with Zhu Jia, Deputy General Manager of the Sovereign Business Department at China EximBank.

He said the project “will translate into economic savings, increased productivity, and a better experience for millions of road users.”

The digital traffic management system will include cameras and sensors to support data-driven traffic enforcement, improve road safety, and shorten travel times.

According to the Treasury, the project was supposed to start in January 2025, but it has been delayed because the design is not finished and procurement is still ongoing.

In November 2024, Samsung Construction and Trading Corporation signed a Sh7.9 billion deal with Kenya Urban Roads Authority (Kura) for the execution of the first phase of the ITS project.

The scope of work includes building a Traffic Management Centre (TMC) at City Cabanas on Mombasa Road and installing smart traffic systems at 25 major junctions.

It also includes installing intelligent equipment like traffic signals, signal controllers, intersection surveillance cameras, vehicle enforcement systems, and a communication network.

This will reduce the need for traffic police to manually control intersections.

Some of the junctions to be covered include Moi Avenue/Kenyatta Avenue, Koinange/Kenyatta Avenue, Mbagathi Way/Lang’ata Road, and Limuru Road/Muthaiga Road, among others.

In May 2022, a Korean consortium led by Cheil Engineering Company won a consultancy contract for the implementation of phase one of the Nairobi ITS project.

According to Kura, the Koreans were tasked with guiding the execution of the first phase of the Nairobi ITS & Junction Improvement project at Sh548 million.

At that time, it was widely understood that the entire project would be financed by the Economic Development Cooperation Fund (EDCF) through the Export-Import Bank of Korea.