Stanbic Bank and Mota-Engil to Enhance Kenya’s Roads

The Kenyan National Treasury established the Road Annuity Programme, funded mainly by fuel levies, to upgrade 10,000 kilometres of roads and attract up to USD 2.8 billion in private investment. Mota-Engil, a global construction company known for its timely and budget-conscious project delivery, partnered with Kenyan firm Lee Construction Ltd. Their joint project began in Q1 2022 and is set to last 24 months.

Mota-Engil was awarded two concessions under the programme: Lot 15 in central Kenya and Lot 18 in western Kenya. These concessions include upgrading 16 roads (10 in Lot 15 and 6 in Lot 18) from gravel to asphalt, covering 44.9 kilometres in Lot 15 and 35.1 kilometres in Lot 18, benefiting residents in 10 counties. This initiative supports Kenya’s low-carbon and climate-resilient development goals.

Stanbic Bank Kenya, with a long-standing relationship with Mota-Engil, is the sole lender and acts as the agent for the facility, currency hedge provider, and guarantee provider to the contracting authority.

Infrastructure is crucial for economic success, and the Kenyan government is committed to developing rural and urban roads to drive economic growth, aligning with Kenya’s Vision 2030. The road improvements are expected to stimulate trade, open new markets for farmers, improve access to towns, lower transport costs, create jobs, and enhance safety for local communities. Additionally, the upgrades will reduce vehicle operating costs and improve flood resilience through better road drainage. This development will strengthen Kenya’s economic position in Eastern Africa and solidify its status as a leading service and commercial hub.