April 17, 2026
EU Signs Multi-Billion Deal With Kenya To Build Modern Roads And Enhanced Electricity Supply

EU Signs Multi-Billion Deal With Kenya To Build Modern Roads And Enhanced Electricity Supply

Following an agreement between the National Treasury and the European Union (EU), Kenya could benefit from modern roads and increased electricity supply.

On Friday, Treasury Cabinet Secretary John Mbadi met with Edward Claessen, a European Union Infrastructure Fund official.

During the meeting, the two leaders discussed the partnership between the European Union and Kenya.

The discussions focused on reviewing ongoing development projects worth Ksh35 billion (€260 million) and assessing the status of future projects and their funding prospects.

The two principals talked about finishing the Olkaria Unit 6 Geothermal Project, which costs Ksh16 billion (€114 million).

They also considered the Kisumu Water Project, which is currently under construction and valued at Ksh 4.9 billion.

During the meeting, Claessen announced the European Union’s commitment to provide Ksh15.4 billion to complete the Mombasa-Mariakani Road and the Last Mile Connectivity Project.

The Mombasa-Mariakani Road project entails dualing the 41-kilometer highway to boost trade and economic integration by providing a more efficient and effective transportation system.

Other projects planned for implementation include the Nairobi Sustainable Transport Programme, which will oversee the construction of Bus Rapid Transit (BRT) Line 3.

The project aims to decongest Nairobi by providing an efficient bus network.

The road network will be more than 12 kilometers long, crossing the Nairobi city center to connect hospitals, Dandora Train Station and key market areas.

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Other projects under construction include the Mwache Multipurpose Dam, which aims to increase water supply in Mombasa and Kwale counties.

The Treasury has approved the dam project, which includes a water treatment plant, transmission pipeline, terminal reservoirs, and distribution network rehabilitation. It has been submitted to the Ministry of Water and Sanitation for further action.

“Claessen reaffirmed the EU’s commitment to supporting Kenya’s infrastructure development, positioning the country as a regional leader in climate change mitigation, addressing water supply deficits, and fostering SME growth,” read part of the statement by the National Treasury.

The latest update comes just days after the Korean government announced plans to build a 20-kilometer highway from Machakos to Emali in Makueni, connecting to the Mombasa Road.

EU Signs Multi-Billion Deal With Kenya To Build Modern Roads And Enhanced Electricity Supply

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