Kenya Secures Major Infrastructure Deals with China for Highways, SGR Extension, and Nithi Bridge
President William Ruto concluded a historic state visit to China, sealing multi-billion-shilling agreements to transform Kenya’s infrastructure landscape. The deals, signed during bilateral talks with Chinese President Xi Jinping, encompass the expansion of major highways, the construction of the long-overdue Nithi Bridge, and the extension of the Standard Gauge Railway (SGR) from Naivasha to Malaba on the Uganda border. These projects, part of 20 Memoranda of Understanding (MoUs), aim to bolster Kenya’s role as a regional logistics hub under China’s Belt and Road Initiative (BRI), enhance intra-regional trade, and drive economic growth through job creation and improved connectivity. The agreements also cover digital infrastructure, healthcare, and vocational training, signaling a deepening of Kenya-China ties.
The infrastructure package includes the dualling of the Nairobi-Nakuru-Mau Summit-Malaba highway, a critical transport corridor linking Kenya’s capital to Western Kenya and Uganda. Additionally, the Kiambu-Northern Bypass and Eldoret Bypass will be upgraded, easing traffic congestion and improving regional connectivity. The construction of the Nithi Bridge in Tharaka Nithi County addresses a notorious accident-prone stretch that has claimed numerous lives, a concern raised by local leaders like Meru Governor Mutuma M’ethingia during Ruto’s recent tour of the region. The bridge’s upgrade, backed by Chinese financing, is seen as a vital step to enhance safety and connectivity for Kenyans traveling through this perilous route. These road projects mark a shift from a previously canceled Ksh190 billion deal with a French consortium, with China now taking the lead in Kenya’s road infrastructure development.
The SGR extension from Naivasha to Malaba, covering approximately 475 kilometers, is a flagship component of the agreements. The project, stalled since 2019 due to funding challenges and a commercial viability study demanded by China Exim Bank, will now proceed under a three-way funding model requiring at least $4.5 billion. This model includes contributions from Chinese financiers (40%), the Kenyan government (30%) through railway development levies, and other undisclosed partners. The extension, divided into Phase II (Naivasha to Kisumu) and Phase III (Kisumu to Malaba), is expected to cost Ksh380 billion for the Naivasha-Kisumu leg and Ksh122.9 billion for Kisumu-Malaba. By connecting Kenya to Uganda, where a 272-kilometer SGR from Malaba to Kampala is under construction, the railway will facilitate trade across East Africa, reaching Rwanda, South Sudan, and the Democratic Republic of Congo.
Beyond transport, the agreements include investments in Kenya’s digital superhighway through the expansion of the national fiber optic network, aiming to boost connectivity and catalyze development. In healthcare, China pledged grants to improve hospital infrastructure and support private-sector investment in pharmaceutical manufacturing, aligning with Kenya’s Universal Health Coverage goals under the Bottom-Up Economic Transformation Agenda. Additionally, deals were signed to fund Technical and Vocational Education and Training (TVET) centers, develop an intelligent transport management system to address Nairobi’s traffic woes, and introduce an instant-fine system for errant motorists. At the Kenya-China Private Sector Roundtable, investment deals worth Ksh137 billion ($1.06 billion) were signed, spanning manufacturing, agriculture, tourism, and infrastructure, with the potential to create over 28,000 jobs.
The agreements have sparked optimism, with posts on X hailing the SGR extension, highway expansions, and Nithi Bridge construction as “central pillars” for positioning Kenya as a regional transport powerhouse. However, the deals come amid geopolitical tensions, with Ruto navigating a delicate balance between China and the United States amid their ongoing trade war. Critics note that the tougher funding model for the SGR, described as a departure from earlier loan-heavy arrangements, reflects Kenya’s cautious approach to managing its debt burden. Nonetheless, Ruto emphasized Kenya’s openness for business, highlighting incentives like a 10-year tax holiday and a stable regulatory environment to attract Chinese investors. The projects, set to begin construction in 2025, are poised to reshape East Africa’s transport and economic landscape, cementing Kenya’s strategic partnership with China.