The Government of Kenya, through the National Treasury, has signed a Ksh 28.675 billion concessional loan agreement with the Export-Import Bank of China (China EximBank) to fund the Intelligent Transport System (ITS) Project, a major milestone in the modernization of the entire transport management system in the country.

The agreement was formalized on November 26, 2025, by Cabinet Secretary (CS) FCPA John Mbadi and Ms. Zhu Jia, the Deputy General Manager of the Sovereign Business Department of China EximBank.

China EximBank Chairman Mr. Chen Huaiyu and National Treasury Principal Secretary Dr. Chris Kiptoo CBS were the signatories to the signing.

As noted by CS Mbadi, the ITS Project is an important component of Kenya’s integrated transport management framework. Once fully operational, ITS will:

• Enhance traffic coordination
• Reduce congestion
• Enhance road safety through real-time surveillance
• Shorten travel times
• Support Data-Driven Enforcement of transport regulations
• Strengthen the digital backbone for smart-city infrastructure.

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According to CS Mbadi, “these efficiencies will translate into economic savings, increased productivity, and a better experience for millions of road users.”

Kenya-China Partnership in Infrastructure

CS Mbadi commended China EximBank due to its consistent partnership, noting its instrumental role in landmark projects such as the Standard Gauge Railway (SGR), the Southern Bypass, Thika Road (Lot 3), Kenyatta University Teaching, Referral and Research Hospital, and the Nairobi Expressway.

“These projects remain enduring proof of what Kenya and China can do together,” he added

China EximBank Chairman Mr. Chen Huaiyu reaffirmed the Bank’s commitment towards intensified collaboration with Kenya, calling the country a “strategic partner” and emphasizing the willingness of the Bank to finance projects that will enhance connectivity, catalyze investment, and drive sustainable economic development.

Supporting Ongoing and Future Projects

CS Mbadi also highlighted some of the recent positive developments under the Kenya-China partnership, including the signing of the concessional TVET Project and approval of two new projects under the Preferential Buyer’s Credit, which were dualizing the Nairobi Northern Bypass and the Bosto Dam Water Supply Project.

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He encouraged China EximBank to expedite the release of shortlisted companies to enable the prompt commencement of procurement processes.

Strengthening Local Presence

Dr. Chris Kiptoo assured that the government would provide all the necessary support for China EximBank to open an office in Nairobi, which he stated would help increase coordination, efficiency, and cooperation of both current and future projects.

CS Mbadi also welcomed Cabinet approval for the dualling of Muthaiga-Kiambu-Ndemberi Road, with the Kenya Urban Roads Authority (KURA) advancing procurement for the contractor.

He reaffirmed the National Treasury’s commitment to sensible borrowing, sound development partnerships, and infrastructure programmes that will ensure Kenya transforms in the long term through enhanced economic development.

FCPA John Mbadi the CS for Treasury and China EximBank chairperson Mr Huaiyu
PHOTO/NT/Courtesy