NAIROBI, Kenya, Sep 15 – Kenya is turning to Chinese lenders for fresh funding as the government steps up plans to build a new generation of expressways, including the proposed Mau Summit-Malaba and Nairobi-Mombasa highways.
Treasury Principal Secretary Chris Kiptoo held talks with China Development Bank (CDB) executive vice-president Wang Peng in Beijing on Tuesday, with the discussions focusing on ongoing projects and opportunities to expand financing cooperation.
The talks come as Kenya seeks billions of shillings to finance major transport infrastructure projects, with the government also pursuing funding from the Asian Infrastructure Investment Bank (AIIB).
Prime Cabinet Secretary Musalia Mudavadi said last week that Kenya was pursuing fresh AIIB financing, with the proposed 243-kilometre Mau Summit-Malaba Expressway among the projects expected to benefit.
The Mau Summit-Malaba road is planned as a four-lane, access-controlled dual carriageway and is part of the government’s wider plan to expand the country’s expressway network.
Kenya is also planning an expressway linking Nairobi to Mombasa, while the Nairobi-Thika corridor is another priority project. The financing push suggests that the government is looking beyond conventional budget allocations to mobilise the capital required for the projects.
At the CDB meeting, Kiptoo said Kenya had reviewed ongoing projects with the Chinese lender and explored ways of broadening cooperation.
“Held discussions with Mr Wang Peng, Executive Vice President of China Development Bank, at the CDB Headquarters in Beijing, where we reviewed ongoing projects and explored opportunities to broaden our cooperation,” Kiptoo said.
The discussions were also extended to water infrastructure, with Water and Sanitation Principal Secretary Julius Korir accompanying Kiptoo. Among the projects discussed was the proposed Keben Dam Water Supply Project, alongside wider plans for water harvesting and supply.
The latest financing push is not limited to development banks. Kenya is also exploring the possibility of raising about Sh64 billion through a Panda Bond, which would tap China’s domestic capital market.
The government is simultaneously financing the expansion of Jomo Kenyatta International Airport, a project estimated at Sh154.2 billion, involving terminal and airfield improvements and construction of a new passenger terminal.
The emerging financing strategy points to a broader effort by the government to secure external and capital-market funding for infrastructure at a time when competing demands on the national budget remain high.
