Kenya launches $1.5 bn road project with Chinese firms

Beijing is among Kenya's top five development lenders, with Nairobi owing China some $4.7 billion, according to official 2025 data.

Much of this comes from the $5 billion Chinese-funded railway linking Mombasa, Nairobi and Naivasha -- Kenya's costliest project since independence.

President William Ruto celebrated the launch of the two-phase public-private partnership (PPP) project, which will see more than 170 kilometres (105 miles) of road built, strengthening transport links from east and central Africa to Mombasa's port.

The project's main contractor, China Road and Bridge Corporation, will upgrade some 139 kilometres of road.

The Shandong Hi-Speed Road and Bridge International Engineering Company will construct roughly 94 kilometres.

The construction is expected to ease congestion on the Northern Corridor -- connecting the port of Mombasa to Western Kenya and neighbouring countries -- which handles 40 percent of Kenya's port trade traffic.

"If we waited for the national budget, we'd have waited a lifetime," Ruto said on Friday.

"If we borrowed, we'd have increased our debt burden. If we taxed more, we'd have strained families," he said.

The president has been pushing for PPPs to fund major infrastructure projects as he seeks to ease the country's debt burden.

Kenya -- one of east Africa's largest economies -- has accumulated more than $92.4 billion in debt, roughly 67 percent of its gross domestic product.

Beijing has denied accusations of trapping cash-strapped governments in debt dependency.

In October, Kenya and China agreed to restructure $3.5 billion of debt into yuan, a move Kenyan officials said would save the country $215 million annually in repayments.

The Chinese firms will recover their investment through toll fees under a 30-year concession.