TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting and offers deep insights into Kenyan and global economic trends.

A Project Development Report (PDR) for the KSh 468 billion Nairobi-Mombasa Expressway has been rejected by the National Treasury Public-Private-Partnership (PPP) Committee.

This suggests that the 419-kilometre highway's intended construction date of 2026 may be delayed.

A PDR provides the structure for a project's planning and development, addressing aspects such as goals, timetables, technical specifications, resource allocation, scope, risk assessments, and impacts.

The PDR for the four-lane road, to be called the Usahihi Express, was presented by Usahihi Expressway Ltd, a greenfield project backed by the US-based infrastructure investment management firm, Everstrong Capital.

The project's objective is to reduce traffic congestion and travel time between Kenya's two largest cities.

Following the rejection, the consortium will need to draft a new PDR in the hopes of gaining clearance within the project's specified timeframe.

"The proposal to proceed with the feasibility study and project development was approved in December 2023. The PDR was then completed and submitted for approval. On July 2, 2025, it was decided that the PDR should be rejected because it did not meet the criteria.

Under Section 43 (12) of the PPP Act, 2021, the proposal may be resubmitted to the committee for a new decision," the Public-Private Partnership (PPP) Directorate stated, as reported by Daily Nation.

Although he did not elaborate, PPP director-general Kefa Senda stated that the filed PDR had gaps.

According to several project insiders, the acquisition and use of land for the greenfield corridor were unclear.

The project's land acquisition is estimated to cost over KSh 12.9 billion, which will impact toll fees.

On the expressway, motorists will pay KSh 12 to KSh 13 per kilometre, which equates to at least KSh 5,280 for the full stretch.

However, Usahihi Expressway Ltd noted that if construction costs are reduced, the fees may be lowered.

Everstrong Capital and Usahihi Expressway Ltd expect to generate over 75% of the toll revenue from the highway's heavy truck traffic.

After operating it for 30 years to recoup its investment, the American company will hand it over to the Kenyan government.

In other news, the Nairobi-Nakuru Highway will experience traffic disruptions as part of the Kenya National Highways Authority's (KeNHA) dualing planning.

KeNHA urged all motorists to assist traffic enforcement officials throughout the survey period.

The authorities stated that the purpose of the exercise is to gather data, including the specifics of drivers' journeys.

Source: TUKO.co.ke