Major Road Expansion in Kenya Set to Boost Trade and Sustainability with Support from Team Europe

Major Road Expansion in Kenya Set to Boost Trade and Sustainability with Support from Team Europe Photo credit: EIB

(IN BRIEF) The upgrade of the Kwa-Jomvu to Mariakani road in Kenya, backed by Team Europe, will transform a two-lane highway into a four and six-lane dual carriageway, improving road safety, reducing emissions, and enhancing regional trade. The €140 million (Ksh 19 billion) project includes funding from the European Investment Bank (EIB Global), KfW, the EU, and the Kenyan government. Upon completion, it is expected to benefit 20,000 vehicles daily and significantly reduce traffic congestion and transportation costs.

(PRESS RELEASE) LUXEMBOURG, 27-Feb-2025 — /EuropaWire/ — The European Investment Bank (EIB Global), the German Development Bank (KfW), the European Union (EU) Delegation to Kenya, and the Kenyan government have officially launched a transformative road expansion project aimed at enhancing the Kwa-Jomvu to Mariakani section of road. This upgrade, worth €140 million (Ksh 19 billion), will expand the existing two-lane road to a modern four and six-lane dual carriageway, fostering economic growth and sustainability in Kenya and the broader East African region.

This vital infrastructure project, located in the Mombasa-Mariakani area, forms a critical link between Kenya’s bustling port city and Nairobi. It is also a key part of the Northern Corridor, which connects Mombasa to Uganda, Rwanda, South Sudan, Burundi, and the Democratic Republic of Congo, facilitating essential trade routes for landlocked nations. The road’s upgrade is expected to improve road safety, reduce emissions, and contribute to regional trade by enhancing transport efficiency.

The project is being financed through a collaborative effort under the EU’s Global Gateway initiative. Team Europe’s support includes €100 million in concessional loans from EIB Global and KfW, along with a €20 million grant from the EU and an additional €20 million contribution from the Government of Kenya.

Once completed, the upgraded road is projected to accommodate around 20,000 vehicles daily, benefiting local communities and enhancing transport operations. This will lead to reduced traffic congestion, shorter travel times, and lower vehicle operating costs. Moreover, the expansion is expected to significantly decrease emissions by promoting smoother traffic flow and reduced fuel consumption.

Speaking at the project’s launch, Kenyan President William Ruto expressed gratitude for the support from Team Europe, stating, “I would like to thank our partners for their contribution to developing and expanding this crucial road infrastructure, which will ease the movement of goods to and from the port and enhance efficiency in regional trade.”

The EU’s Commissioner for International Partnerships, Jozef Sikela, also praised the project, noting, “This is an excellent example of high-quality infrastructure delivered through the partnership between the Kenyan government and the European Union. Together, we are accelerating Kenya’s economic growth and strengthening trade cooperation within the East African Community.”

European Investment Bank Vice-President Thomas Östros highlighted the project’s significance in fostering sustainable transport: “Sustainable transport is crucial for growth and inclusion, as it connects people and facilitates trade. This project integrates sustainability, safety, accessibility, and efficiency, helping to strengthen the Kenyan economy and its role in regional trade.”

Kristina Laarmann, Director of KfW in Nairobi, emphasized the broader economic impact of the project: “The Mombasa port is a key gateway for East Africa, and this project will enhance connectivity, reduce congestion, and create jobs during and after construction. It will ultimately reduce transport costs, stimulate local businesses, and contribute to job creation.”

The Kwa-Jomvu-Mariakani road upgrade is part of a broader initiative to modernize the Northern Corridor, East Africa’s busiest trade route. The project complements other ongoing and completed infrastructure upgrades under the EU’s Global Gateway transport investment, such as the Mombasa-Kilifi and Kitale-Morpus roads and the Isebania-Kisii-Ahero highway.

The expanded road will play a pivotal role in the EU’s broader strategy to develop twelve key strategic transport corridors across Africa as part of the €150 billion Global Gateway EU-Africa Investment package, aimed at boosting trade and sustainable growth across the continent.

About EIB Global:

The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives.

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner in Global Gateway. We aim to support €100 billion of investment by the end of 2027, around one third of the overall target of this EU initiative. With Team Europe, EIB Global fosters strong, focused partnerships, alongside fellow development finance institutions and civil society. EIB Global brings the Group closer to people, companies and institutions through our offices around the world.

About KfW:

KfW Bankengruppe, founded in 1948, is the German promotional bank and one of the world’s leading promotional banks. It is 80% owned by the Federal Government and 20% by the federal states. The business sector KfW Development Bank carries out Financial Cooperation (FC) projects with developing countries and emerging economies on behalf of the German Federal Government, especially of the Federal Ministry for Economic Cooperation and Development (BMZ). KfW Development Bank employs approximately 1,200 people at the head office in Frankfurt am Main as well as 400 specialists at more than 60 international locations, who cooperate with partners all over the world. Their goal is to combat poverty, secure peace, protect the environment and the climate as well as ensure fair globalization. KfW Development Bank is a competent and strategic adviser for current development policy issues.

About EU:

The European Union has set out the Global Gateway, which is a new European Strategy that helps its partners build better connectivity infrastructure for any society. With this strategy the EU is creating sustainable and trusted connections for people and the planet to tackle the most pressing global challenges  from climate change and protecting the environment, to improving health security and boosting competitiveness and global supply chains.

In Kenya, the European Union has cooperated in the transport sector for more than 30 years. This has delivered significant improvements for the Northern and Ethiopia/South Sudan corridors as well as improvements in Rural and Urban Roads. More than €550 million have been provided as EU grants, which have enabled and strengthened the trade flows between Kenya and its neighbours.

For More Information:

EU-Africa: Global Gateway Investment Package

EU-Africa: Global Gateway Investment Package – Strategic Corridors

Media Contact:

Harriet Kwamboka
h.ongaki@eib.org
+ 254 114106871

Press Office
press@eib.org
+352 43791

SOURCE: European Investment Bank