The government of Kenya has secured Ksh18 billion to construct the Nairobi-Nakuru Mau Summit Highway.
African Development Bank approved the funding on Monday, July 18, to expand the highway to a four-lane carriageway.
According to a statement by the bank, the loan will have a 20 years tenor.
"The Bank has taken the E&S Coordinator role (with IFC) for this project. It is considering to provide a senior loan of up to USD150 million (UA107million) ADB NSO loan with a 20- year tenor and 3.5 years (42 months) grace period during construction," their statement read in part.
The project, financed under the government’s First Mover Public-Private Partnership (PPP) programme, is expected to take three years to complete.
It entails widening the 175km four-lane dual carriageway and operation and maintenance of the existing A8 road from Rironi to Mau Summit.
The funds will also be utilised to strengthen the existing 57.8km from Rironi to Naivasha.
Following a competitive tender process, the concession for the project was awarded to Rift Valley Highway Limited (RVH).
The company is wholly incorporated in Kenya and is owned by VINCI Group and Meridian Infrastructure Africa Fund (MIAF).
According to data from Kenya National Highways Authority (KeNHA), the road network accounted for 97 per cent of freight traffic in 2020.
It forms part of the strategic Northern Corridor, which serves as transport and trade for other East African countries. Nairobi Nakuru Mau Summit highway also provides gateway access through Kenya from the Port of Mombasa to other countries, including Rwanda, Uganda, Burundi, South Sudan, and DRC
The project was conceived to promote regional integration.
It is expected to generate 1,500 jobs during construction and 200 during its operation and has at least 40 per cent local content in the form of labour and locally-sourced materials.
