The Asian Infrastructure Investment Bank (AIIB), a multilateral development bank established in January 2016, finances sustainable infrastructure to foster development across its member states. AIIB’s Mission is to finance infrastructure for tomorrow, with a clear thematic focus on (i) green infrastructure (ii) connectivity and regional cooperation (iii) technology enabled infrastructure and (iv) private capital mobilization.
Kenya’s long-term development strategy, Vision 2030, is implemented through sequential five-year Medium-Term Plans and aims to transform the country into a middle-income economy offering a high quality of life to its citizens. Central to this vision is the modernization of infrastructure to boost competitiveness and improve livelihoods.
The Fourth Medium-Term Plan (MTP IV), covering 2023-2027, sets out the government’s strategic approach to transitioning Kenya into an upper-middle-income country with investments in infrastructure identified as a key priority.
In the infrastructure sector, government has identified the need to enhance transport connectivity by constructing 6,000km of new roads, maintenance of rural and urban road networks, upgrading of rail, air and seaport facilities and services; expansion of communication and broadcasting systems; and increased investments in renewable energy generation and distribution.
The implementation of MTP IV will require approximately KSh. 16,136 billion (around USD125 billion at prevailing exchange rates). To meet this funding requirement, the government seeks to mobilize resources from diverse financing sources, with Public-Private Partnerships (PPPs) targeted to deliver 12% of the investment gap—approximately KSh 1,936 billion (or USD 15 billion prevailing exchange rates). Through PPPs, the government aims to harness private sector capital, innovation, and efficiencies to accelerate the rollout of priority infrastructure.
As part of this strategy, the government has prioritized the decongestion of its highways through PPP based construction, development, operation and maintenance. Among their priority projects is the upgrade and capacity enhancement of the Mau Summit – Malaba Road (the ‘Project’).
Following a request from the National Treasury of the Republic of Kenya, AIIB (the “Client”) is seeking to support the National Treasury and the Kenyan National Highways Authority in the implementation of this Project.
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