The National Treasury has signed a USD 185 million (approximately Ksh24 billion) concessional loan agreement with the Export-Import Bank of China (China EximBank) to finance the Intelligent Transport System (ITS) Project in Nairobi.
The agreement was signed on Wednesday, November 26, by Treasury Cabinet Secretary John Mbadi and Deputy General Manager of the Sovereign Business Department, Zhu Jia. The signing ceremony was also attended by China EximBank Chairman Chen Huaiyu and Principal Secretary Dr. Chris Kiptoo.
CS Mbadi described the ITS project as a critical pillar of Kenya’s integrated transport management framework, designed to modernize traffic mobility across the capital’s main transport corridors.
The project will equip 25 roundabouts in Nairobi with digital traffic management systems, including traffic lights, cameras, and sensors. These systems are intended to improve traffic coordination, reduce congestion, enhance road safety through real-time monitoring, shorten travel times, and support data-driven enforcement of transport regulations.
CS Mbadi emphasized that the ITS system will generate economic savings, increase productivity, and provide a better experience for millions of Nairobi road users. He also praised China EximBank for its continued support in landmark infrastructure projects, including the Standard Gauge Railway, the Southern Bypass, Thika Road (Lot 3), the Kenyatta University Teaching, Referral and Research Hospital, and the Nairobi Expressway.
China EximBank Chairman Chen Huaiyu reaffirmed the bank’s commitment to deepening cooperation with Kenya, highlighting the country as a strategic partner. He said the ITS project would strengthen bilateral ties, improve connectivity, attract investment, and support sustainable development in Kenya.
CS Mbadi highlighted other recent developments reflecting the maturity of the Kenya-China partnership, such as the signing of the concessional TVET project and approval of two new projects under Preferential Buyer’s Credit, including the dualling of the Nairobi Northern Bypass and the Bosto Dam Water Supply Project. He also encouraged the bank to expedite the release of shortlisted companies to commence procurement without delays.
Principal Secretary Dr. Chris Kiptoo affirmed the government’s readiness to support China EximBank in establishing a local office in Nairobi. A local presence, he said, would enhance coordination, improve efficiency, and strengthen collaboration on ongoing and future projects.
CS Mbadi also noted the Cabinet’s in-principle approval for the dualling of the Muthaiga–Kiambu–Ndumberi Road, with procurement currently underway. He reiterated the National Treasury’s commitment to prudent borrowing, effective development partnerships, and infrastructure programs that support Kenya’s long-term economic growth.
Once operational, the ITS project is expected to transform Nairobi’s transport management system, reduce the reliance on manual traffic enforcement, and strengthen the city’s digital infrastructure for smart-city initiatives.
