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HomeDaily NewsMonday, December 15, 2025Kenya Announces Major Infrastructure Projects and Funding Mechanisms - December 2025
Business & Economy4 stories from 1 sources

Kenya Announces Major Infrastructure Projects and Funding Mechanisms - December 2025

The Kenyan Cabinet is set to approve the National Infrastructure Fund (NIF), aiming to mobilize Sh5 trillion. In parallel, the government has initiated the expansion of the Nairobi Central Railway Station as part of the Nairobi Railway City project to create a multimodal transport interchange. In a separate infrastructure deal, the Kenya Electricity Transmission Company Limited (KETRACO) has signed a Sh40.4 billion ($311 million) Public-Private Partnership (PPP) agreement to expand and modernize the country's power transmission network with Africa50 and Power Grid Corporation of India. The Cabinet also approved the transfer of smart driving licence issuance from the National Transport and Safety Authority (NTSA) to a private investor under a new PPP framework.

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Monday 5:34 PMCapital Business

KETRACO signs Sh40.4bn PPP to expand, modernise power transmission network

KETRACO signs Sh40.4bn PPP to expand, modernise power transmission network

The Kenya Electricity Transmission Company Limited (KETRACO) has signed a Sh40.4 billion ($311 million) Public-Private Partnership (PPP) agreement to expand and modernize Kenya’s power transmission network, involving Africa50 and Power Grid Corporation of India.

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Key Highlights

The Kenya Electricity Transmission Company Limited (KETRACO) has signed a Sh40.4 billion ($311 million) Public-Private Partnership (PPP) agreement to expand and modernize Kenya’s power transmission network, involving Africa50 and Power Grid Corporation of India.

  • The project is fully financed, implemented, operated, and maintained by the private sector, with no public funds committed.
  • The partnership will fund two high-voltage transmission lines: the 400kV Lessos–Loosuk line and the 220kV Kibos–Kakamega–Musaga line.
  • The project was initiated as a Privately Initiated Proposal (PIP) and received approvals, culminating in the signing of agreements on December 15, 2025.
  • KETRACO plans to develop an additional 8,000 kilometres of transmission lines over the next 20 years, requiring about $5 billion in investment.
  • The Energy Cabinet Secretary, Opiyo Wandayi, stated this partnership will accelerate access to reliable and affordable electricity.
Sunday 6:06 PMCapital BusinessFirst

Cabinet to okay Sh5tn National Infrastructure Fund tomorrow

Cabinet to okay Sh5tn National Infrastructure Fund tomorrow

The Kenyan Cabinet is set to approve the National Infrastructure Fund (NIF) tomorrow, which aims to mobilize Sh5 trillion to transform the nation from a third-world to a first-world economy.

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Key Highlights

The Kenyan Cabinet is set to approve the National Infrastructure Fund (NIF) tomorrow, which aims to mobilize Sh5 trillion to transform the nation from a third-world to a first-world economy.

  • The NIF will fund major infrastructure projects including upgrading 2,500km of highways, tarmacking 28,000km of roads, and expanding key airports and ports.
  • President Ruto announced that KSh5 trillion will also be invested in boosting food security through building 50 mega dams, 200 mini-dams, and 1,000 micro-dams to irrigate 2.5 million acres.
  • An additional 10,000 megawatts of energy will be generated to power industrialization efforts, and the government is investing in 240,000 affordable houses and 177,000 student hostel beds.
Monday 9:08 AMCapital Business

Government to expand Nairobi Central Railway Station capacity

Government to expand Nairobi Central Railway Station capacity

The Kenyan government has initiated the expansion of the Nairobi Central Railway Station as part of the Nairobi Railway City project, aiming to alleviate congestion and enhance connectivity in the capital. This redevelopment will transform the station into a multimodal transport interchange.

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Key Highlights

The Kenyan government has initiated the expansion of the Nairobi Central Railway Station as part of the Nairobi Railway City project, aiming to alleviate congestion and enhance connectivity in the capital. This redevelopment will transform the station into a multimodal transport interchange.

  • The project will increase the station's capacity from two platforms to nine platforms.
  • Kenya Railways Corporation is responsible for the development, which includes new 2-level buildings, entrances, exits, and footbridges.
  • The project will integrate rail, BRT, and pedestrian movement, and convert current congested parking areas into public parks and recreational spaces.
  • The Environmental and Social Impact Assessment (ESIA) identified potential challenges like noise and dust during construction, with mitigation measures proposed by the National Environment Management Authority (NEMA).
  • The expansion is expected to generate economic benefits, including job creation and increased land value in Nairobi.
Monday 7:50 PMCapital Business

Cabinet okays transfer of smart driving licence issuance to private investor

Cabinet okays transfer of smart driving licence issuance to private investor

Kenya's Cabinet has approved the transfer of smart driving licence issuance and management from the National Transport and Safety Authority (NTSA) to a private investor. This shift will occur under a new public-private partnership (PPP) framework, aiming to modernize licensing and enhance road safety.

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Key Highlights

Kenya's Cabinet has approved the transfer of smart driving licence issuance and management from the National Transport and Safety Authority (NTSA) to a private investor. This shift will occur under a new public-private partnership (PPP) framework, aiming to modernize licensing and enhance road safety.

  • The PPP will integrate Second-Generation Smart Driving Licences with an instant fines system, a mobile driving licence wallet, and a driver merit and demerit points framework.
  • The NTSA has issued approximately 2.1 million smart driving licences against a target of 5 million since its launch in 2017, facing persistent implementation challenges.
  • The new system is expected to digitize enforcement through real-time verification and automated fine issuance, with the mobile licence wallet allowing drivers digital access to their licenses.
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