Kenya has received a significant financial boost in its efforts to modernize one of East Africa’s most critical transport arteries after the Multilateral Cooperation Center for Development Finance (MCDF) approved a USD 3.15 million (Ksh407 million) grant to prepare a comprehensive road enhancement project between Mau Summit and Malaba. The decision, reached during the MCDF Governing Committee meeting held in Beijing on November 25, 2025, represents a major milestone in Kenya’s ambitious infrastructure development agenda and signals growing international confidence in the country’s public-private partnership framework.
The grant will support a comprehensive feasibility study for the proposed public-private partnership (PPP) project, which aims to upgrade the strategically important 243-kilometer stretch linking Mau Summit in Nakuru County to the Malaba border crossing with Uganda. This corridor serves as a vital gateway for regional trade flows across Uganda, Rwanda, Burundi, eastern Democratic Republic of Congo, and northern Tanzania, making its modernization essential for East African economic integration.
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AIIB’s First Standalone Investment in Kenya
The feasibility study will be implemented by the Asian Infrastructure Investment Bank (AIIB), marking what could become the multilateral lender’s first standalone investment in Kenya and its inaugural PPP structuring effort in Africa. This represents a significant development in Kenya-China financial cooperation, as AIIB, founded in 2016 and now boasting 110 member states, has primarily focused its African investments on co-financed projects with other development institutions.
Kenya formally joined AIIB in September 2024, seeking access to more flexible, concessional long-term funding beyond traditional Western lenders. The Beijing-based institution was established as part of China’s Belt and Road Initiative to strengthen connectivity across Asia, Europe, and Africa through road, rail, and power projects, while serving as a counterweight to US-dominated institutions like the International Monetary Fund and World Bank.
According to reporting by Business Daily, the bank’s entry into Kenya comes just over a year after Nairobi became a fully paid-up member in efforts to bridge the country’s estimated Sh16.14 trillion infrastructure funding gap. The Mau Summit–Malaba project represents AIIB’s strategic expansion into standalone lending, moving away from its earlier model of primarily co-financing projects with other multilateral development banks.
Strategic Importance of the Northern Corridor
The Mau Summit–Malaba section forms a critical part of the Northern Corridor, widely recognized as the busiest and most important trade route in East and Central Africa. The corridor connects the Port of Mombasa—East Africa’s largest seaport—to the landlocked economies of the region, facilitating the movement of an estimated 30 million tonnes of cargo annually, according to data from the Northern Corridor Transit and Transport Coordination Authority (NCTTCA).
The Northern Corridor’s economic significance cannot be overstated. The Port of Mombasa serves as the gateway for cargo belonging to a vast hinterland that includes Kenya, Uganda, Rwanda, Burundi, Democratic Republic of Congo, Tanzania, South Sudan, Somalia, and Ethiopia. In recent years, the port has handled throughput exceeding 34 million metric tonnes annually, with domestic cargo accounting for approximately 64% of total volumes and transit cargo representing nearly 30%, demonstrating the corridor’s critical role in regional trade facilitation.
The road network runs from Mombasa Seaport through Kenya and Uganda to Kigali in Rwanda, Bujumbura in Burundi, and Kisangani in the Democratic Republic of Congo. The same network also provides vital connectivity between Kenya, Uganda, and Juba in South Sudan. However, the existing infrastructure has struggled to keep pace with growing trade volumes, resulting in chronic congestion, extended transit times, and elevated accident rates along critical sections.
Improving the Mau Summit–Malaba stretch is expected to significantly reduce transport costs, ease congestion that has plagued the corridor for years, and cut travel time for the thousands of commercial trucks that use this route daily. For landlocked countries dependent on this corridor, efficient road connectivity translates directly into reduced import and export costs, enhanced competitiveness, and improved access to global markets.
Comprehensive Feasibility Study Framework
The MCDF-funded feasibility study will examine multiple critical dimensions of the proposed upgrade, including the road’s technical and engineering viability, assessment of climate change resilience to ensure long-term sustainability, evaluation of environmental and social safeguards in line with international standards, and determination of tolling affordability to balance cost recovery with accessibility for users.
According to MCDF, the study is specifically designed to “foster a transparent, bankable PPP aligned with International Financial Institution standards” and will help prepare critical foundational documents including the PPP structure, detailed contractual frameworks, and comprehensive tendering frameworks. The objective is to ensure the project can attract substantial private investment while maintaining rigorous adherence to international environmental and social responsibility standards.
David Hendrickson, MCDF Senior Communications Officer, elaborated on the study’s comprehensive scope, stating: “The feasibility study will assess the project’s technical viability, resilience to climate and engineering risks, environmental and social safeguards, and tolling affordability. It will also foster a transparent, bankable PPP aligned with International Financial Institution standards and able to mobilize substantial private investment as well as prepare the project’s PPP structure, contract, and tendering documents.”
The new comprehensive assessment will build upon an ongoing pre-feasibility study that is currently being financed by AIIB. This phased approach reflects international best practices in large-scale infrastructure development, allowing for progressive refinement of project parameters and risk assessment before committing to full-scale implementation. The decision to expand the initial pre-feasibility work into a comprehensive feasibility study follows a formal request from the Government of Kenya seeking additional technical and financial support to accelerate preparations for this strategically vital upgrade.
Expected Regional Benefits and Impact
If implemented as planned, the upgraded road is expected to deliver transformative benefits across multiple dimensions. Infrastructure improvements will likely include expansion to dual carriageways, implementation of safer highway designs incorporating modern traffic management systems, and deployment of measures specifically targeted at reducing accidents, which remain disturbingly high along certain sections of the corridor due to heavy traffic volumes, narrow lanes, and deteriorating road surfaces.
According to data maintained by the Kenya National Highways Authority (KeNHA), parts of the Northern Corridor rank among the country’s most accident-prone routes. The combination of heavy commercial vehicle traffic, inadequate road capacity, and aging infrastructure has created dangerous conditions for both commercial and private motorists. The proposed upgrade aims to address these safety concerns through enhanced road geometry, improved sight lines, dedicated truck lanes, and modern traffic control systems.
Beyond safety improvements, the project is expected to deliver substantial economic benefits. These include reduction of truck idling time and elimination of extended queues at traffic bottlenecks, which currently waste fuel and increase operating costs for transport companies. The project will also lower carbon emissions by easing congestion and enabling more efficient vehicle operation, contribute to significant cuts in logistical costs for both importers and exporters throughout the region, and improve overall reliability of the Trans-African Highway Network, enhancing Kenya’s position as a regional trade hub.
The economic multiplier effects of improved road infrastructure extend far beyond direct transport cost savings. Reduced transit times translate into lower inventory costs for businesses, enhanced competitiveness for regional exports, and improved food security through more efficient distribution of agricultural products. For the landlocked countries dependent on this corridor, every hour saved in transit time and every percentage point reduction in transport costs directly impacts their economic competitiveness and development potential.
Kenya’s Evolving PPP Framework
If the Mau Summit–Malaba upgrade proceeds to full construction, it would join the recently completed Nairobi Expressway as another flagship PPP in Kenya’s rapidly evolving transport sector. The Nairobi Expressway, a 27-kilometer toll road completed in 2022, has been widely cited as a successful model for PPP implementation in East Africa, demonstrating that well-structured partnerships can deliver high-quality infrastructure on accelerated timelines while managing public sector fiscal constraints.
The Nairobi Expressway was developed under a Design-Build-Finance-Operate-Transfer (DBFOT) model with China Road and Bridge Corporation, operating under a 27-year concession period. The $668 million project was completed six months ahead of schedule and now serves approximately 50,000 vehicles daily, cutting travel time from Nairobi’s Jomo Kenyatta International Airport to the Westlands area from over two hours during peak periods to just 15-20 minutes. This dramatic improvement in connectivity has enhanced Kenya’s reputation for infrastructure delivery and attracted interest from other potential private investors.
The success of the Nairobi Expressway has provided valuable lessons for structuring subsequent PPP projects. Key success factors identified include strong government commitment and clear policy framework, transparent procurement and contract negotiation processes, comprehensive stakeholder engagement including affected communities, robust risk allocation between public and private partners, and adherence to environmental and social safeguard standards. Kenya’s PPP Act of 2021 has provided an updated legal framework that clarifies roles, responsibilities, and procedures, offering greater certainty to potential private investors.
However, Kenya’s PPP landscape also continues to face challenges. The Nairobi-Nakuru-Mau Summit highway project, announced by President William Ruto to commence on November 28, 2025, has experienced delays related to negotiations with Chinese consortium partners over investment caps and project scope. These challenges underscore the complexities of structuring large-scale PPPs, particularly when involving multiple international partners with different regulatory constraints and commercial requirements.
Presidential Support and Policy Context
The Mau Summit–Malaba project benefits from high-level political support, with President William Ruto emphasizing infrastructure development as a cornerstone of his administration’s economic agenda. In recent meetings with Chinese officials, the President has highlighted the transformative impact of infrastructure investments on Kenya’s economic trajectory and regional connectivity.
“Infrastructure development in our country has made a huge leap forward courtesy of the strong and deep relations between Kenya and China, and Chinese companies,” President Ruto stated, citing previously completed projects such as the Standard Gauge Railway, the Nairobi Expressway, and various road networks. He noted that several major China-backed projects continue to move forward, including Talanta Sports City, 21 new stadia, the Bomas Convention Centre, and the Lamu–Ijara–Garissa road.
Looking ahead, the President indicated that the government has lined up additional large-scale infrastructure investments, including extending the railway network to Kisumu and Malaba, alongside the proposed Galana Dam in Tana River County. This broader infrastructure push reflects Kenya’s strategy to leverage its geographical position as a regional hub to drive economic growth and enhance its role in facilitating East African trade and integration.
The President’s vision extends beyond the immediate Mau Summit section. “I do not want the road to end at Mau Summit,” President Ruto has stated, “it will extend to Kericho, Kisumu and Malaba and also to Eldoret in Uasin Gishu County.” This comprehensive approach to corridor development underscores the government’s commitment to creating integrated transport infrastructure that serves both domestic and regional economic objectives.
Regional Integration and Trade Facilitation
The upgrade of the Mau Summit–Malaba road must be understood within the broader context of East African economic integration efforts. The East African Community (EAC) has identified transport infrastructure as a critical enabler of regional integration, with efficient corridors essential for implementing the EAC Common Market and supporting the eventual goal of a fully integrated East African Political Federation.
The Northern Corridor serves not just as a transport route but as an economic lifeline for landlocked member states. Uganda, Rwanda, Burundi, and South Sudan depend heavily on this corridor for imports of essential goods, including fuel, food, manufactured products, and capital equipment. Similarly, their exports of agricultural products, minerals, and other commodities must traverse this corridor to reach global markets via the Port of Mombasa.
Transit times along the Northern Corridor have long been a source of concern for regional policymakers and business leaders. While significant improvements have been achieved through initiatives like the Single Customs Territory and One Stop Border Posts, physical infrastructure constraints continue to limit the corridor’s efficiency. Trucks can spend days waiting at bottlenecks or navigating congested urban areas, adding substantial costs to regional trade.
The NCTTCA has coordinated numerous initiatives to enhance corridor performance, including development of the Regional Electronic Cargo Tracking System, establishment of One Stop Border Posts to streamline border crossings, implementation of the Vehicle Load Control Charter to protect road infrastructure, and promotion of sustainable freight transport practices. However, these “soft” infrastructure improvements can only achieve their full potential when supported by adequate physical road infrastructure.
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Climate Resilience and Environmental Considerations
A distinctive feature of the planned feasibility study is its emphasis on climate change resilience, reflecting growing international recognition that infrastructure investments must be designed to withstand increasing climate variability and extreme weather events. East Africa has experienced growing frequency of severe droughts and floods, both of which can disrupt transport corridors and impose significant economic costs.
The study will assess vulnerability to climate-related hazards including flooding, landslides, and extreme heat, evaluate design standards that can enhance resilience to projected climate changes, consider drainage systems and water management to prevent flood damage, and analyze the need for adaptive management strategies to respond to evolving climate risks over the project’s lifecycle.
Environmental and social safeguards represent another critical component of the feasibility study. International financing standards require comprehensive assessment of potential environmental impacts, development of mitigation measures to minimize negative effects, consultation with affected communities and stakeholders, and establishment of grievance mechanisms for addressing concerns. These safeguards serve both to protect communities and ecosystems and to reduce project risks by identifying and addressing potential sources of conflict or opposition early in the development process.
The emphasis on environmental and social safeguards has become increasingly important as African infrastructure projects face greater scrutiny from civil society organizations, affected communities, and international observers concerned about potential negative impacts. Projects that fail to adequately address environmental and social concerns face heightened risks of delays, cost overruns, and reputational damage. Conversely, projects that demonstrate strong environmental and social performance can attract more favorable financing terms and enjoy smoother implementation.
Tolling Framework and Affordability Concerns
One of the most sensitive aspects of the proposed upgrade concerns the tolling structure that will be necessary to make the PPP commercially viable. Toll roads remain controversial in Kenya, with public resistance to user charges frequently complicating efforts to implement cost-recovery mechanisms. The feasibility study will need to carefully balance the financial requirements for attracting private investment against affordability concerns that could limit usage or generate political opposition.
The Nairobi Expressway experience offers both encouraging and cautionary lessons. While the expressway has attracted significant usage, with many motorists willing to pay tolls to avoid congestion on alternative routes, concerns persist about whether toll charges exclude lower-income users and whether sufficient alternative routes exist for those unable or unwilling to pay. These debates have influenced subsequent PPP proposals, including the Nairobi-Nakuru-Mau Summit highway, where toll rates have emerged as a crucial factor in negotiations.
For the Mau Summit–Malaba corridor, tolling considerations are complicated by the road’s role in facilitating regional trade. High toll charges could undermine the corridor’s competitiveness relative to alternative routes, potentially diverting cargo to the Central Corridor through Tanzania or discouraging regional trade altogether. The feasibility study will need to model various toll scenarios, considering impacts on traffic volumes, revenue projections, and regional economic effects.
International experience suggests that successful toll road PPPs require careful attention to several factors. These include establishment of reasonable toll rates linked to users’ ability to pay, provision of toll-free alternative routes for local traffic, transparent toll-setting mechanisms with clear escalation formulas, and effective enforcement to prevent revenue leakage while maintaining efficiency. The feasibility study will need to adapt these principles to the specific context of the Mau Summit–Malaba corridor, considering the mix of local, national, and international users.
Financing Structure and Risk Allocation
While detailed financing arrangements will only be determined following completion of the feasibility study, the project is expected to follow established patterns for large-scale infrastructure PPPs. Typically, such projects involve a combination of private equity from the concessionaire consortium, debt financing from commercial banks and development finance institutions, and potential credit enhancement or guarantees from multilateral institutions or export credit agencies.
Risk allocation between public and private partners represents a critical determinant of PPP success. Well-structured PPPs assign risks to the party best positioned to manage them, creating appropriate incentives while avoiding the imposition of risks that would either deter private investment or expose the public sector to unmanageable contingent liabilities. Common risk categories include construction risk (schedule and cost overruns), traffic and revenue risk (actual usage falling short of projections), regulatory and political risk (changes in government policy), and force majeure events (natural disasters, wars, or other unforeseeable circumstances beyond parties’ control).
The feasibility study will need to develop a risk allocation framework that attracts qualified private partners while protecting public interests. This typically involves assigning construction and operational risks primarily to the private sector, which has expertise in managing these areas, while having government retain or share certain regulatory and political risks. Traffic and revenue risk allocation varies across projects, with some PPPs placing this risk entirely on the private sector while others incorporate revenue guarantees or sharing mechanisms to make projects more bankable.
Implementation Timeline and Next Steps
Following approval of the MCDF grant, the feasibility study is expected to commence in early 2026, with completion anticipated within 12-18 months depending on the scope and complexity of assessments required. Upon completion, the study findings will be submitted to the Government of Kenya for review and decision on whether to proceed with procurement of a private partner.
If the decision is made to advance the project, procurement would likely occur through a competitive tender process governed by Kenya’s PPP Act. This would involve issuance of a request for qualifications to identify capable bidders, followed by a request for proposals from shortlisted consortia, evaluation of proposals based on technical and financial criteria, and negotiation and signing of definitive project agreements. This procurement process typically requires 12-24 months, meaning that construction could potentially commence in late 2027 or 2028 if all stages proceed smoothly.
Construction of the 243-kilometer corridor would represent a major undertaking, likely requiring 3-5 years depending on the scope of works and implementation approach. If the project adopts a phased construction strategy, certain sections could potentially be completed and opened to traffic earlier, providing some benefits while remaining sections are still under construction.
Throughout this timeline, continuous stakeholder engagement will be essential. This includes consultations with affected communities along the corridor, coordination with local and national government authorities, engagement with transport operators and users, and regular communication with regional partners whose economies depend on corridor efficiency. The feasibility study process itself should initiate this engagement, establishing relationships and communication channels that will continue throughout project development and implementation.
Broader Implications for African Infrastructure Development
The Mau Summit–Malaba project represents more than just a single road upgrade; it exemplifies evolving approaches to infrastructure financing and development across Africa. The continent faces an estimated annual infrastructure financing gap of $68-$108 billion, according to various estimates from the African Development Bank and other institutions. Traditional public financing alone cannot close this gap, necessitating innovative approaches that mobilize private capital while ensuring projects serve public development objectives.
PPPs offer one avenue for bridging this gap, but their successful implementation requires careful structuring, transparent governance, and realistic assessment of risks and returns. African countries’ experiences with PPPs have been mixed, with successful projects like Kenya’s Nairobi Expressway demonstrating the model’s potential, while problematic experiences in other contexts have highlighted risks of poorly structured deals that leave governments with excessive contingent liabilities or deliver inadequate services to users.
The involvement of new financing institutions like AIIB introduces additional dynamics into African infrastructure development. China’s growing infrastructure financing role across Africa has generated both opportunities and debates. Proponents highlight China’s willingness to finance projects that Western lenders might avoid, faster project implementation timelines, and technology transfer benefits. Critics raise concerns about debt sustainability, environmental and social standards, and geopolitical implications of growing Chinese influence.
The Mau Summit–Malaba project’s emphasis on adhering to international standards for environmental, social, and governance safeguards may help address some of these concerns. By structuring the project through a multilateral institution (AIIB) operating under internationally recognized frameworks, and subjecting the project to comprehensive feasibility analysis, Kenya is seeking to combine China’s financing capacity with global best practices in project development and safeguards.
Regional Connectivity Beyond Roads
While the Mau Summit–Malaba road upgrade focuses on highway infrastructure, it exists within a broader regional connectivity agenda that encompasses multiple transport modes. The Northern Corridor Development Strategy envisions an integrated multimodal transport system incorporating road, rail, pipeline, inland waterway, and air connectivity.
The Standard Gauge Railway (SGR), already operational between Mombasa and Nairobi, has plans for eventual extension to Uganda, with potential further connections to Rwanda, Burundi, and beyond. This railway infrastructure has begun diverting some cargo from road transport, easing pressure on highways while providing an alternative mode for bulk goods. However, roads remain essential for last-mile connectivity, perishable goods, and routes where rail infrastructure is not economically viable.
Lake Victoria’s inland waterway system provides another component of regional connectivity, with ferry services and potential for enhanced cargo transport between lakeside ports. The revival of Uganda’s railway connection to the lake port of Port Bell, and ongoing discussions about enhanced shipping services on the lake, could create multimodal transport chains that use road, rail, and water transport in combination.
Pipeline infrastructure for petroleum products represents yet another element. The existing pipeline from Mombasa to Nairobi, with extensions into Uganda, reduces the volume of fuel trucks on roads, enhancing both safety and environmental outcomes. Proposals for new pipelines, including the East African Crude Oil Pipeline (EACOP) to transport Ugandan oil to Tanzania’s coast, would further transform regional energy logistics.
This multimodal vision requires coordinated planning and investment across modes, with road infrastructure like the Mau Summit–Malaba upgrade serving as one component of an integrated system. The feasibility study should consider how the road upgrade interacts with and complements other transport infrastructure, ensuring that investments are mutually reinforcing rather than duplicative or contradictory.
Conclusion: A Corridor with Continental Significance
The MCDF’s approval of funding for the Mau Summit–Malaba feasibility study represents an important step forward for East African transport infrastructure and regional economic integration. While the road itself spans just 243 kilometers within Kenya’s borders, its impacts will resonate across the landlocked countries that depend on the Northern Corridor as their primary trade lifeline to global markets.
Success in modernizing this corridor could deliver substantial economic benefits through reduced transport costs, enhanced trade competitiveness, and improved regional integration. It could also demonstrate effective models for structuring infrastructure PPPs that attract private investment while maintaining appropriate safeguards and serving public development objectives. The involvement of AIIB marks an evolution in African infrastructure financing, potentially expanding the available pool of capital beyond traditional Western institutions.
However, significant challenges remain. The feasibility study must navigate complex technical, environmental, social, and financial considerations to produce a project design that is both commercially viable and publicly acceptable. Toll road acceptance, environmental impacts, land acquisition, and stakeholder coordination will all require careful management. Regional coordination across multiple countries with different priorities and capacities adds further complexity.
The project’s success will ultimately be measured not just by whether the road gets built, but by whether it delivers meaningful improvements in corridor efficiency and regional economic performance at a reasonable cost, while respecting environmental and social safeguards. If achieved, the Mau Summit–Malaba upgrade could serve as a model for other African corridors facing similar challenges of inadequate infrastructure, limited public resources, and ambitious development goals. As such, stakeholders across the continent will be watching closely as this project progresses from feasibility study to potential implementation.
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By: Montel Kamau
Serrari Financial Analyst
26th November, 2025
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