In a hurry? Here’s a quick summary….
- President Ruto signed a Sh477 billion ($3.6 billion) deal for a new Nairobi-Mombasa expressway and secured major investments, including $1 billion for a data center.
- He is advocating for the renewal of the African Growth and Opportunity Act (AGOA) during his US visit.
During his visit to the United States, President Ruto is actively seeking to attract more private investment to Kenya.
A significant milestone of this visit was the signing of a Sh477 billion ($3.6 billion) agreement between the Kenya National Highways Authority (KeNHA) and Everstrong Capital LLC for the construction of a new expressway linking Nairobi and Mombasa.
This agreement was formalized during President William Ruto’s state visit to the United States.
The new expressway, aptly named Usahihi—which translates to “correctly” in Swahili—will span 440 kilometers and feature four to six lanes.
Read Also:
Omtatah Files Court Case to Stop Finance Bill 2024 Public Participation
Gathoni Wamuchomba Blasts Anne Waiguru for Defending Failures in Kenya Kwanza Gov’t
Mutahi Kahiga Voices on Alleged Mistreatments Gachagua is Facing in Kenya Kwanza Govt
It will traverse a vast wildlife reserve, creating a crucial connection between Nairobi and the port city of Mombasa.
This road is anticipated to serve as a vital gateway for numerous East African economies, complementing the existing two-lane public road and the railway financed by China Exim Bank.
An official statement emphasized that 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 self-financing.
This project follows an earlier agreement with Bechtel Corp. in 2017, where the San Francisco-based company withdrew from a $3.5 billion project, opting not to build and operate the highway but to act solely as a contractor.
Similarly, Korea Overseas Infrastructure & Urban Development Corp. had conducted feasibility studies for a highway estimated to cost around $1.5 billion.
In addition to the expressway deal, other significant investments were announced during President Ruto’s US tour. Microsoft Corp. and G42, a leading artificial intelligence firm from the United Arab Emirates, plan to invest $1 billion in a new data center in Kenya.
Coca-Cola Co. also announced a $175 million investment in its local operations.
Furthermore, the US International Development Finance Corp., which provides loans to private firms rather than governments, is expected to unveil several hundred million dollars in new investments in Kenya, increasing its total investment portfolio in the country to over $1 billion.
Read Also:
Concern Rises As Red Eye Disease Spreads To Other Busia Sub Counties
Lioness Caught on CCTV Entering Residence in Rongai
Moreover, President Ruto is advocating for the renewal of the African Growth and Opportunity Act (AGOA), a trade program that grants duty-free access to the US market for qualifying sub-Saharan African countries. The current AGOA program is set to expire in 2025.
President William Ruto was received by President Joe Biden at the White House on May 22, 2024.
This marks the first state visit by an African leader to the US in 16 years, underscoring the US’s effort to strengthen its ties with Africa amid growing influence from China and Russia.
Pingback: US Lawmakers Slam Decision Not To Allow President Ruto Address Congress - Kenyan Whispers