Kenya Insights

Tag: Amb. Kyle McCarter

  • Toll Charges Revealed: How Much Kenyans Will Be Paying To Use Nairobi-Mombasa Expressway

    Toll Charges Revealed: How Much Kenyans Will Be Paying To Use Nairobi-Mombasa Expressway

    NAIROBI — Motorists using the upcoming 440-kilometer Nairobi-Mombasa Expressway will pay between Sh12 and Sh13 per kilometer, significantly less than the Sh18.5 per kilometer charged on the existing Nairobi Expressway, officials revealed yesterday.

    The announcement came during the release of the project’s feasibility study in Nairobi, where Usahihi Expressway Limited Chairman Kyle McCarter, a former US ambassador to Kenya, shared details about the toll structure for the ambitious Sh464.9 billion ($3.6 billion) highway project.

    Kyle McCarter yesterday when he presented Everstrong’s 2,300+ page feasibility study for the 459km Usahihi Expressway to KeNHA the full PPP compliance & $3.6B in private financing. Construction begins 2026.
    Kyle McCarter yesterday when he presented Everstrong’s 2,300+ page feasibility study for the 459km Usahihi Expressway to KeNHA the full PPP compliance & $3.6B in private financing. Construction begins 2026.

    “The toll charges will be in the neighborhood of Sh12 to Sh13 a kilometer,” McCarter said, emphasizing that these rates could potentially decrease further as the company works to reduce construction costs and capital expenses. “The more we save, the more that toll rate goes down.”

    At the current projected rate, motorists traveling the entire route would pay approximately Sh5,280 for the journey.

    Unlike the Nairobi Expressway, which charges different rates based on vehicle class, this base toll will apply to all vehicles regardless of size.

    The expressway, being developed under a public-private partnership (PPP) arrangement, is expected to reduce travel time between Nairobi and Mombasa from the current eight-plus hours to just 4.5 hours. The road will feature seven toll stations and will include modern amenities such as charging stations for electric vehicles.

    McCarter revealed that land acquisition represents a significant project component, with approximately Sh12.9 billion ($100 million) earmarked for compensating landowners. “The Kenyan government is not providing us with land for this road. Usahihi is actually purchasing the land,” he explained.

    The US-backed consortium hopes to receive approvals from the Treasury’s PPP unit within the next two months and achieve financial closure by the end of the year. This timeline would position the project for groundbreaking in early 2026.

    A critical funding milestone was reached in February when Usahihi signed an agreement to raise Sh129.1 billion ($1 billion) from local pension funds. CPF Capital and Advisory has been appointed to mobilize this domestic funding by the end of 2025.

    Under the agreement, Usahihi will operate the expressway for 30 years before transferring it to the government. The company projects that trucks, which constitute the majority of traffic on the route, will generate approximately 75 percent of the toll road’s revenue.

    The Nairobi-Mombasa Expressway represents one of Kenya’s most ambitious infrastructure projects to date, aiming to significantly improve connectivity between the country’s capital and its primary seaport.

    —

    *Editor’s note: This article was written based on information published in Business Daily on May 5, 2025.*

  • U.S. Firm Linked To Former Ambassador Targets Kenyan Pension Funds for Nairobi-Mombasa Expressway

    U.S. Firm Linked To Former Ambassador Targets Kenyan Pension Funds for Nairobi-Mombasa Expressway

    In a significant move to fund the ambitious Nairobi-Mombasa Expressway, US infrastructure investment manager Everstrong Capital has initiated a major fundraising effort, targeting local pension funds.

    This comes after securing a deal with CPF Capital & Advisory, a key player in managing retirement benefits in Kenya, to assist in raising the necessary funds for the Usahihi Expressway Project.

    The 440-kilometer expressway, designed to alleviate congestion between Kenya’s capital and its largest port city, is part of a $3.6 billion (Sh465.12 billion) agreement signed between Everstrong Capital and the Kenya National Highways Authority (KeNHA) in May 2024 during President William Ruto’s state visit to the United States.

    “CPF Capital & Advisory will act as a bridge to pension funds, providing a portion of the required capital for the project,” said an official privy to the negotiations. This move leverages the substantial Sh1.97 trillion held in retirement benefits assets as of June 30, 2024, according to data from the Retirement Benefits Authority (RBA).

    The Nairobi-Mombasa Expressway, also known as the Usahihi Expressway, aims to reduce the travel time between Nairobi and Mombasa from the current 10.5 hours to approximately 4.5 hours, addressing one of Africa’s most congested routes.

    The project has attracted international interest in the past, with companies like the Korean Overseas Infrastructure and Development Corporation (KIND) and Bechtel having shown interest, though previous negotiations fell through over financing models.

    Bechtel had proposed a model where the Kenyan government would pay for the road’s construction upfront rather than relying on toll revenues, which was seen as financially burdensome given Kenya’s existing debt pressures. Additionally, Bechtel’s demand for a virgin land corridor posed further challenges due to the high costs associated with land acquisition.

    This project is not the only infrastructure initiative facing financing hurdles in Kenya. Previously, a deal for the Nairobi-Nakuru-Mau Summit Toll Road was terminated due to concerns over high service fees demanded by a French consortium over a 13-year period. The Kenyan government decided against incurring further debt to cover these fees, highlighting ongoing fiscal prudence amidst economic constraints.

    The involvement of pension funds in the Usahihi Expressway project underscores a strategic shift towards domestic financial resources to fund critical infrastructure, potentially setting a precedent for future public-private partnership (PPP) projects in Kenya. This approach not only mobilizes local capital but also aims to ensure that the financial burden does not fall heavily on the state’s balance sheet, aligning with broader economic sustainability goals.

    Everstrong Capital is linked to former U.S. Ambassador Kyle McCarter, who served as the U.S. Ambassador to Kenya from 2019 to 2021 and is now a partner at Everstrong Capital.

  • Americans To Construct Sh471B Nairobi-Mombasa Expressway

    Americans To Construct Sh471B Nairobi-Mombasa Expressway

    Kenya Highways Authority (KeNHA) and U.S. infrastructure investment manager Everstrong Capital have signed a $3.6 billion (about Sh471 billion) Project Development Agreement (PDA) to build a 440 km (273 miles) highway between the capital and port city Mombasa.

    President William Ruto, unveiled the Usahihi Nairobi to Mombasa Expressway, during his visit with the President of the United States, Joe Biden, while visiting the White House on Thursday the 23rd of May 2024.

    According to the company, expressway is the largest toll road project in Africa and envisions a transformative symbol of Kenya’s dedication to transparent and innovative infrastructure development.

    A bigger highway between Mombasa and Nairobi has been on the wish list of successive governments aiming to ease congestion on the busy road to and from the port.

    “The project anticipates attracting investments totalling $3.6 billion, sourced from international investors, development agencies, pension funds and an exceptionally large number of Kenyan private investors,” Everstrong said in its statement.

    Financing

    Funding of the project has been an issue, the company in a statement stated that Kenyans won’t be burdened with the initial funding as the model will allow it to self manage.

    “Usahihi will pay for itself, not burdening the Government of Kenya. It is structured as a Public Private Partnership with revenue coming from road users. Usahihi will organize finance, construction, tolling, operation, and maintenance of the expressway under a 30-year concession with construction lasting 3-4 years,” the company stated.

    “The construction of the Usahihi expressway poses no financial risks to the Kenyan government, as it is structured to operate independently from the Government of Kenya’s balance sheet and is projected to be financially self-sustaining. The project anticipates attracting investments totaling USD 3.6 billion, sourced from international investors, development agencies, pension funds, and an exceptionally large number of Kenyan private investors.” It added.

    Design

    The expressway is engineered to accommodate the safe passage of trucks, buses, and automobiles, featuring rest stops, wildlife observation points, electric vehicle charging infrastructure powered by renewable energy sources, and strategically located overpasses designed by environmental experts based on animal migration patterns to facilitate safe wildlife migration.

    It’s expected to bring the current 10.5-hour journey between Nairobi and Mombasa, known as one of Africa’s most dangerous routes for both people and wildlife, down to a safe journey of approximately 4.5 hours.

    Everstrong Capital’s proficient team consists of world-class Engineering, Procurement, and Construction firms.

    Amb. Kyle McCarter, Everstrong Capital Partner & Usahihi Chairman, says, “The Usahihi Expressway isn’t just a project; it’s a testament to the transformational power of doing things right. It symbolizes passion, commitment, and transparency, demonstrating how to deliver immense value, not only to Kenyan citizens but to the entire East Africa region. It’s about changing lives and shaping the future of Kenya.”

    “The U.S. Embassy welcomes the signing of a project development agreement, which marks a significant step forward in the construction of a new Nairobi-Mombasa highway,” said Meg Whitman, United States Ambassador to Kenya. “This stretch of road is vital for Kenya’s continued economic growth and a new
    highway will be safer for all drivers, passengers, and pedestrians who depend on this important corridor for work, pleasure, and living.”

    William Ruto, President of Kenya stated, “More than just a road, the Usahihi Expressway sets a standard for transparent, sustainable, and community-centered development, fostering economic growth and environmental protection, serving as a global inspiration for ethical development. It embodies a commitment to transparency, hard work, and the empowerment of Kenyan citizens by engaging them as users, owners, and investors, creating a cycle of localized benefits and ensuring that communities directly reap the rewards of their investment and participation.”

    Everstrong Capital, is a US-owned infrastructure investment manager with a presence in both the US and Kenya with a focus on advancing sustainable infrastructure development across Africa.

    It initiated the Everstrong Kenya Infrastructure Fund (EKIF), which is dedicated to financing projects in energy, transportation, communication, and social infrastructure within East Africa and has played a pivotal role in significant infrastructure projects, including its investment in Gulf Power’s Athi River Power project and its founding sponsorship of Milele Energy, an independent power producer holding a 25% stake in the Lake Turkana Wind Project. Everstrong Capital is also assisting SunCode Energy as it enters the African Solar Energy market.