A key investor in the Mombasa–Nairobi Expressway project has withdrawn from the ambitious infrastructure plan, with emerging reports suggesting links to shifting geopolitical and commercial dynamics involving China.

The abrupt exit of the international partner has cast uncertainty over the future of the proposed multi-billion-shilling highway, which was expected to ease congestion on the current Mombasa Road and significantly cut travel time between Kenya’s two largest cities.

Sources familiar with the matter indicate that the decision to pull out was influenced in part by a realignment of regional infrastructure financing priorities, with Chinese-backed interests increasingly asserting influence over major projects in East Africa.

The exiting investor, whose identity remains under wraps due to confidentiality agreements, had been involved in the preliminary design and financing framework for the expressway under a public-private partnership model.

The move has triggered speculation about the possibility of Chinese firms stepping in to take over the project, either directly or through affiliated state-owned enterprises already active in Kenya’s transport and construction sectors.

China has been Kenya’s largest bilateral lender over the past decade and has funded key infrastructure developments including the Standard Gauge Railway and major roads under the Belt and Road Initiative.

Officials at the Ministry of Transport have downplayed the withdrawal, saying the project remains a top priority and that alternative investors are being engaged.

They further noted that expanding and modernising the Nairobi–Mombasa transport corridor remains central to Kenya’s regional trade integration and economic growth strategy.

Analysts suggest the investor’s departure may also reflect growing caution among Western financiers about competing with Chinese-backed ventures in Africa, especially in projects requiring long-term capital commitments and involving complex land acquisition processes.

While construction on the expressway had not yet begun, feasibility studies and stakeholder consultations had been underway for over two years. With the sudden exit, the project may face delays or require a significant restructuring of its financing model.

As the government explores new partnerships, questions remain about transparency, cost implications, and the broader strategic interests that continue to shape infrastructure development in Kenya.

The unfolding situation could signal a deeper shift in how such mega-projects are funded and who ultimately gets to build them.