Ambitious 10-Year Overhaul

President William Ruto has unveiled a sweeping Sh5 trillion infrastructure development agenda, outlining plans to dual 21 major roads, extend the Standard Gauge Railway (SGR) to the Ugandan border, and modernise Jomo Kenyatta International Airport (JKIA). During his State of the Nation address on Thursday, November 20, 2025, the President positioned the 10-year plan as a cornerstone of his administration's strategy to transform Kenya's economic landscape.

The Ministry of Roads and Transport has identified 2,500 kilometres of highways for dualing and an additional 28,000 kilometres for tarmacking over the next decade. Among the priority projects is the dualling of the congested 170-kilometre Rironi–Naivasha–Nakuru–Mau Summit corridor, a critical artery for trade and transport in the region. The President announced that he would launch this project next week, along with the 58-kilometre Rironi–Maai Mahiu–Naivasha road.

Other key roads earmarked for expansion include vital trade routes such as Mau Summit–Eldoret–Malaba, Kisumu–Busia, and Athi River–Namanga, which are crucial for regional connectivity. The plan also covers commercially significant corridors like Machakos Junction–Mariakani and Mombasa–Lunga Lunga, aiming to boost efficiency at the Port of Mombasa.

SGR Extension and JKIA Modernisation

A significant component of the infrastructure push is the long-awaited extension of the SGR from its current terminus in Naivasha. President Ruto confirmed that construction to extend the line through Kisumu to the Malaba border will commence in January 2026. This phase, passing through Narok, Bomet, Nyamira, Kisumu, and Busia counties, is designed to enhance trade links with Uganda, South Sudan, Rwanda, and the Democratic Republic of Congo, solidifying Kenya's role as a regional logistics hub.

Furthermore, the administration will pursue public-private partnerships (PPPs) to modernise JKIA, the Port of Mombasa, and Lamu Port. The JKIA overhaul includes the construction of a new 4.8-kilometre runway by June 2027 and a new passenger terminal by 2029, aimed at increasing capacity and addressing operational inefficiencies. This move follows the cancellation of a previous plan to engage India's Adani Group after public outcry.

Financing Amid Fiscal Strain

The administration faces the challenge of funding these capital-intensive projects amid a strained fiscal environment and rising public debt, which stood at Sh12.05 trillion by September 2025. President Ruto stated that the government would shift away from debt-funded projects, which have historically driven infrastructure development. Instead, financing will be sourced through a newly proposed National Infrastructure Fund (NIF) and a Sovereign Wealth Fund (SWF).

The NIF is expected to draw capital from the privatisation of state-owned enterprises and private capital through PPPs. The SWF will manage revenues from Kenya's natural resources. This strategy aims to attract private investment, with the government projecting that for every shilling invested from privatisation, it will attract ten shillings from pension funds, private equity, and development finance institutions. However, concerns remain over the country's debt sustainability, with the debt-to-GDP ratio at 67.3% as of September 2025, significantly above the 50% threshold recommended for developing countries by the International Monetary Fund (IMF).

Economic Impact and Regional Significance

The successful implementation of these projects is anticipated to have a profound impact on Kenya's economy. The government projects that the upgrades will lower the cost of doing business, reduce travel times, connect producers to markets, and create significant employment opportunities. The expansion of road and rail networks is particularly vital for the Northern Corridor, which serves as a lifeline for several landlocked East African nations.

Modernising JKIA and the coastal ports is expected to boost tourism, trade, and Kenya's overall competitiveness in the African aviation and maritime sectors. While the economic benefits are potentially transformative, the government's ability to secure the necessary funding without further exacerbating the public debt burden will be critical to the plan's success. The reliance on PPPs and the new sovereign funds represents a significant policy shift, the effectiveness of which will be closely watched by both local and international observers.