Treasury Cabinet Secretary John Mbadi has announced that Kenya is on the verge of securing a Sh72 billion concessional loan from China to fund a string of mega road projects, including a 124-kilometre cross-border highway linking Kenya and Tanzania.
This dramatic turn of events comes after months of frustration and bureaucratic gridlock at the World Bank, which had delayed the release of critical infrastructure financing. “We cannot afford to wait forever while our development agenda stalls,” Mbadi declared during a media briefing on Thursday. “This partnership with China is not just timely—it’s transformative.”
The deal, which is in its final negotiation stages, will see China provide the funding at interest rates below 4%, a move Mbadi described as a “concessional breakthrough” that balances affordability with urgency.
The highlight of the planned projects is the Kenya-Tanzania corridor, a 124km modern highway that is expected to unlock trade, boost tourism, and enhance regional integration. Experts say this strategic route will dramatically cut transport time and improve cross-border logistics between the two East African powerhouses.
“This is not just about roads—it’s about opening up entire economies,” said an official from the Ministry of Roads, who spoke on condition of anonymity.
Analysts say Kenya’s renewed tilt toward Beijing could signal a broader shift in development financing amid growing fatigue over the West’s conditions-heavy loans and delays.
While critics may raise eyebrows over the reemergence of Chinese debt in Kenya’s books, Mbadi was quick to allay fears: “This is not a return to the debt traps of the past. It’s a smart, calculated move. We are negotiating from a position of strength.”
The announcement has already sparked heated debate in political and economic circles, with some welcoming the deal as visionary, while others warn of increased dependency on foreign powers.
As Kenya prepares to seal the deal, all eyes are now on the finer details—especially the timelines, project contractors, and transparency mechanisms.
