Kenya signs Sh24 billion China loan to launch modern intelligent transport system
According to a statement from the National Treasury, the ITS project is a key component of Kenya’s integrated transport management framework.
Kenya has signed a USD185 million (approximately Sh23.99 billion) concessional loan agreement with the Export-Import Bank of China (China EximBank), a state-owned policy bank, to finance the Intelligent Transport System (ITS) project—a flagship initiative designed to improve traffic coordination, enhance road safety, and modernise major transport corridors.
The signing ceremony was hosted by National Treasury Cabinet Secretary John Mbadi and witnessed by China EximBank Chairman Chen Huaiyu and Treasury Principal Secretary Chris Kiptoo.
The agreement was signed by CS Mbadi and Ms Zhu Jia, Deputy General Manager of the Sovereign Business Department at China EximBank.
According to a statement from the National Treasury, the ITS project is a key component of Kenya’s integrated transport management framework. Once operational, it is expected to reduce congestion, streamline traffic flow, boost road safety through real-time surveillance, shorten travel times, and support data-driven enforcement of transport regulations.
Deliver economic savings
CS Mbadi said these improvements would deliver economic savings, increase productivity, and create a better commuting experience for millions of road users.
The project adds to a series of major China-backed infrastructure developments, including the standard gauge railway (SGR), Southern Bypass, Thika Road (Lot 3), the Kenyatta University Teaching, Referral and Research Hospital, and the Nairobi Expressway.
Mbadi praised China EximBank for consistently financing transformative projects, noting their significant role in Kenya’s economic progress.
“These projects remain enduring proof of what Kenya and China can accomplish together,” said Mbadi.
China EximBank Chairman Chen Huaiyu reaffirmed the bank’s commitment to Kenya, highlighting its focus on projects that improve connectivity, attract investment, and promote sustainable economic development. He described Kenya as a strategic partner and expressed confidence that the ITS Project would further deepen bilateral cooperation.
Other infrastructure initiatives
The signing also aligns with other ongoing infrastructure initiatives, including the dualling of the Muthaiga–Kiambu–Ndumberi Road, the TVET project, and two projects under the Preferential Buyer’s Credit scheme—the Nairobi Northern Bypass and the Bosto Dam Water Supply Project.
Mbadi urged China EximBank to fast-track the release of shortlisted companies to ensure procurement can begin without delay.
PS Kiptoo reiterated the government's readiness to support China EximBank in setting up an office in Nairobi, saying a local presence would improve coordination, enhance efficiency, and strengthen collaboration on current and future projects.
"The ceremony, witnessed by Exim Bank Chairman Mr Chen Huaiyu, represents a significant step forward in the implementation of the ITS project by the Kenya Urban Roads Authority (KURA). Once completed, this modern traffic management system will ease congestion, improve signalisation, enhance road safety, and significantly reduce travel time for millions of commuters across Nairobi," said Kiptoo in a separate statement.
Once completed, the ITS project is expected to modernise mobility, support smart-city infrastructure, and enhance road safety—reinforcing Kenya’s commitment to sustainable infrastructure development and long-term economic growth.
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