May 23, 2024

PRESS RELEASE

Kenyan President William Ruto Unveils “Usahihi,” Africa’s Largest Toll Road Project, During U.S. State Visit with President Biden

President of Kenya, H.E. William Ruto, unveils the Usahihi Nairobi to Mombasa Expressway, during his visit with the President of the United States, Joe Biden, while visiting the White House on Thursday the 23rd of May 2024.

The Usahihi expressway is the largest toll road project in Africa and envisions a transformative symbol of Kenya’s dedication to transparent and innovative infrastructure development, serving as a testament to the strengthened partnership between the United States and Kenya.

Everstrong Capital signed the Project Development Agreement (PDA) with Kenya Highways Authority (KeNHA), authorizing the full development rights to Everstrong Capital and its partners.

Usahihi will pay for itself, not burdening the Government of Kenya. It is structured as a Public Private Partnership with revenue coming from road users. Usahihi will organize finance, construction, tolling, operation, and maintenance of the expressway under a 30-year concession with construction lasting 3-4 years.

The Usahihi expressway has garnered significant attention from an array of lenders and investors. The investment of USD 3.6 billion will be led by American Development Finance Institutions and significant investments from Kenyan private sector investors and pension funds.

Nairobi Kenya, 23rd May 2024 – His Excellency President William Ruto has declared the initiation of the Usahihi Nairobi to Mombasa Expressway, a new 4-6 lane dual carriage 440 km safe and efficient climate-sensitive road creating a wealth corridor between Kenya’s two largest cities. The Usahihi Expressway is brought to the forefront during President Ruto’s State Visit to the White House, alongside President Joe Biden.

Everstrong Capital, a US-owned infrastructure investment manager with a presence in both the US and Kenya, signed a Project Development Agreement with KeNHA. By signing the PDA with KeNHA, Everstrong Capital moves forward with the development and construction plans of the Usahihi Expressway delivering self-sufficiency and prosperity among Kenyan citizens.

The expressway is engineered to accommodate the safe passage of trucks, buses, and automobiles, featuring rest stops, wildlife observation points, electric vehicle charging infrastructure powered by renewable energy sources, and strategically located overpasses designed by environmental experts based on animal migration patterns to facilitate safe wildlife migration.

Usahihi, which translates to “Done Correctly” in Swahili, envisions a transformative symbol showcasing Kenya’s dedication to transparent and innovative infrastructure development. The Usahihi expressway is expected to generate hundreds of thousands of jobs. The TVET training program offers technical training to communities in every county along its route and contributes to skill development, enterprise growth, and economic expansion.

The Usahihi expressway promises substantial time and cost benefits for its users by bringing the current 10.5-hour journey between Nairobi and Mombasa, known as one of Africa’s most dangerous routes for both people and wildlife, down to a safe journey of approximately 4.5 hours. This project will establish an economic bridge by facilitating the secure, efficient, and comfortable movement of people and goods throughout the East African region, fostering regional connectivity and enhancing economic opportunities.

The construction of the Usahihi expressway poses no financial risks to the Kenyan government, as it is structured to operate independently from the Government of Kenya’s balance sheet and is projected to be financially self-sustaining. The project anticipates attracting investments totaling USD 3.6 billion, sourced from international investors, development agencies, pension funds, and an exceptionally large number of Kenyan private investors.

Everstrong Capital’s proficient team consists of world-class Engineering, Procurement, and Construction firms and includes the involvement of a leading South African Toll Operations company. This “like-minded” consortium will be reinforced by a comprehensive array of the world’s best technical, legal, and financial consultants and advisors, and collectively boast experience in overseeing more than 20 toll road projects
across Africa.

Amb. Kyle McCarter, Everstrong Capital Partner & Usahihi Chairman says, “The Usahihi Expressway isn’t just a project; it’s a testament to the transformational power of doing things right. It symbolizes passion, commitment, and transparency, demonstrating how to deliver immense value, not only to Kenyan citizens but to the entire East Africa region. It’s about changing lives and shaping the future of Kenya.”

“The U.S. Embassy welcomes the signing of a project development agreement, which marks a significant step forward in the construction of a new Nairobi-Mombasa highway,” said Meg Whitman, United States Ambassador to Kenya. “This stretch of road is vital for Kenya’s continued economic growth and a new highway will be safer for all drivers, passengers, and pedestrians who depend on this important corridor for work, pleasure, and living.”

William Ruto, President of Kenya stated, “More than just a road, the Usahihi Expressway sets a standard for transparent, sustainable, and community-centered development, fostering economic growth and environmental protection, serving as a global inspiration for ethical development. It embodies a commitment to transparency, hard work, and the empowerment of Kenyan citizens by engaging them as users, owners, and investors, creating a cycle of localized benefits and ensuring that communities directly reap the rewards of their investment and participation.”

About Everstrong Capital

Everstrong Capital, established in 2015, is a US-owned infrastructure investment manager with a presence in both the US and Kenya with a focus on advancing sustainable infrastructure development across Africa.

Everstrong Capital initiated the Everstrong Kenya Infrastructure Fund (EKIF), dedicated to financing projects in energy, transportation, communication, and social infrastructure within East Africa and has played a pivotal role in significant infrastructure projects, including its investment in Gulf Power’s Athi River Power project and its founding sponsorship of Milele Energy, an independent power producer holding a 25% stake in the Lake Turkana Wind Project. Everstrong Capital is also assisting SunCode Energy as it enters the African Solar Energy market.