US-based infrastructure investment firm Everstrong Capital has initiated efforts to secure Kshs 452.2 billion from Kenyan pension funds to finance the construction of the 440-kilometer Nairobi-Mombasa Expressway.
In partnership with CPF Capital & Advisory, Everstrong Capital aims to channel significant pension fund assets towards this ambitious infrastructure project.
CPF Capital & Advisory, a subsidiary of CPF Financial Services, will provide transaction advisory and placement services for the “Usahihi Expressway Project,” designed to improve travel efficiency between Nairobi and Mombasa.
With Kenyan pension funds holding substantial assets, amounting to Kshs 2.0 trillion as of June 2024, Everstrong’s initiative represents a significant shift towards domestic capital mobilization for large-scale infrastructure projects.
Project Background
The Kenyan government previously suspended the Nairobi-Mombasa Expressway project in 2018 due to concerns about debt accumulation.
In 2017, the Kenya National Highways Authority (KeNHA) signed a commercial agreement with Messer Bechtel International Inc. for the construction of the 473-kilometer route.
Renewed Focus on Private Sector Involvement
Everstrong Capital has signed a Kshs 465.1 billion agreement with KeNHA to oversee the project. This renewed focus on private sector involvement, particularly leveraging domestic capital, aims to reduce reliance on external debt.
Beyond the Expressway, Kenya is also pursuing the dual-carriage expansion of the Nairobi-Nakuru-Mau Summit highway under a Public-Private Partnership (PPP) model.
“If successful, this model could reduce reliance on external debt, encourage private sector participation, and enhance long-term investment returns for pensioners. Ultimately, improved road networks will boost trade, facilitate regional integration, and drive real estate development along major transport corridors,” Cytonn Investments says in a commentary.
