CS John Mbadi, who accompanied President William Ruto to the Forum on China-Africa Cooperation (FOCAC) in China, signed a credit facility agreement with Tan Jiong, President of the China Development Bank, to finance the Kenya-Chinese Rural Road Project, which will involve the construction of 15 rural roads, a significant step toward improving rural infrastructure.
In terms of structure and design execution, both Kenyan and Chinese officials will oversee the project; the names of the Kenyan and Chinese enterprises that have been hired for the design remain shrouded in mystery. The construction will be handled under the PPP model, which will require the involvement of additional Chinese contractors as well as local players. The project went through development following the signature of the agreement in September 2024. A major road infrastructure development project can take several years, depending on geographical constraints and other variables such as logistics.
The Kenya-Chinese Rural Road Project includes a major financing agreement issued by the China Development Bank, estimated to be in the hundreds of millions of US dollars due to the size of the project. These 15 rural roads will be constructed in various parts of Kenya’s rural communities, focusing on places with limited access to markets and other critical facilities. This will help to provide connectivity between rural people and economic hubs, so improving community well-being.
The relationship strengthens Kenya-China bilateral relations while also increasing both countries’ economic presence. Another MoU was signed between Kenya and the China Africa Development Fund, with the goal of attracting more private investors to the infrastructure investment sector. The specific PPP approach designed for this project aims to improve long-term finance for Kenyan infrastructure and aligns with Kenya’s Vision 2030 master plan for economic development.
China Development Bank is also dedicated to extending the operations of the China Africa Development Fund by establishing a new office in Nairobi. This mega-road infrastructural development plan has the potential to create various opportunities for Kenyans while also improving Kenya’s infrastructure in collaboration with the Chinese people.
