Kenya has dropped plans for a Sh468 billion expressway between Nairobi and Mombasa, opting instead to expand the existing A8 highway.

The Public Private Partnership committee of the National Treasury reached the decision at a meeting on 2 July.

The expressway was to be developed under a Public Private Partnership by US-based Everstrong Capital Kenya and had been promoted as the largest toll road in Africa and one of the most significant American-led infrastructure projects in Africa. Spanning 419 kilometres, it was intended to cut travel time and costs between the capital and the port city.

The Treasury said the proposal failed to meet the requirements of the Public Private Partnership Act of 2021. KeNHA has now been instructed to redesign the scheme as an upgrade of the current road and to resubmit it for evaluation.

People close to the project pointed to uncertainty over land acquisition for a new greenfield route. Preliminary estimates placed the cost at Sh12.9 billion, a figure that would have driven up toll charges. 

Initial projections suggested motorists might pay Sh12 to Sh13 per kilometre, or more than Sh5,000 for the full journey.

Everstrong, also known as Ushahi Expressway, planned to derive about three quarters of toll revenue from heavy trucks and wanted the government to force trucks to use the expressway. 

Such a move risked clashing with the Chinese-built Standard Gauge Railway, which already enjoys state-backed freight guarantees.

The collapse follows a similar failure in 2018 when US engineering giant Bechtel withdrew from an earlier deal over financing disagreements. Bechtel had rejected Kenya’s plan for the road to be funded through toll collections, preferring direct government financing.