91-day T-bill8.750%▲ 0.002
182-day T-bill8.851%▼ 0.008
364-day T-bill9.029%▲ 0.002
Central Bank Rate8.75%07/10/2026
Inflation7.3%October 2026
Top MMF yield10.50%Madison
Sources: CBK auction, 2 Nov 2026 value date (change vs 26 Oct); CBK key rates; fund managers' published yields, as at 15 Nov 2026.

Lake Victoria Basin roads: big KSh130bn plan opens to bidders

Lake Victoria Basin roads: KeNHA lists five design-build packages covering 815km in a US$1bn World Bank-backed plan. See the routes and what bidders need.

Lake Victoria Basin roads corridor: a street in Port Victoria town, Busia County
A street in Port Victoria, Busia County, on the Asembo–Port Victoria–Mulwanda road package. Photo: Peter Bwire / Wikimedia Commons, CC BY-SA 4.0

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The Lake Victoria Basin roads project has moved into procurement, with the Kenya National Highways Authority (KeNHA) listing five design-build road packages covering about 815 kilometres across eight counties. The government plans to fund the work with about US$1 billion (about KSh 130 billion) from the World Bank, according to a General Procurement Notice published on the World Bank’s procurement portal.

The notice, number OP00479589 under project ID P520201, was published on 6 November 2026. It says the Government of Kenya “intends to apply for financing in the amount of USD 1 billion equivalent from the World Bank”. The loan has not yet been approved.

The five Lake Victoria Basin roads packages

KeNHA said contractors will first go through an initial selection for design-build contracts on these road sections:

Package Road section Length
PK1 Muhuru Bay – Sori – Nyagwethe 176km
PK2 Nyagwethe – Mbita – Homa Bay 174km
PK3 Awasi – Katito – Otonglo – Asembo 188km
PK4 Asembo – Nyamonye – Port Victoria – Mulwanda 177km
PK5 Chavakali – Kapsabet – Eldoret 100km

The Lake Victoria Basin roads run through Migori, Homa Bay, Kisumu, Siaya, Busia, Vihiga, Nandi and Uasin Gishu counties. An 815km fibre optic cable network will be laid along the same corridor, with its civil works bundled into the road contracts.

Lake Victoria Basin roads stakeholder forum in Homa Bay reviewing preliminary designs
A KeNHA stakeholder forum in Homa Bay on 13 November 2026 to review preliminary designs for the project. Photo: County Government of Homa Bay

What the US$1bn will pay for

The procurement notice splits the Lake Victoria Basin roads project into four parts:

  • Component A: upgrading about 815km of roads and installing the fibre optic network.
  • Component B: rest stops and truck parking, export aggregation hubs, logistics facilities and one-stop border posts along the corridor.
  • Component C: social and economic facilities for communities in the eight counties.
  • Component D: capacity building for agencies under the Ministry of Roads and Transport.

Works to be tendered through open international competition include the road sections, port and other marine facilities, and logistics and cross-border trade facilities. Consultancy work covers feasibility studies, construction supervision and preliminary designs for the social, marine and logistics facilities.

At the Central Bank of Kenya rate of KSh 129.96 to the dollar on 13 November 2026, US$1 billion works out to about KSh 129.96 billion.

What contractors and suppliers should know

Procurement for the Lake Victoria Basin roads will follow the World Bank’s Procurement Regulations for IPF Borrowers (seventh edition, September 2025) and is open to all eligible firms and individuals. KeNHA said specific notices for contracts under international competitive procurement will be posted on the World Bank’s website, the KeNHA website and in national newspapers. The World Bank will publish the agreed procurement plan after project negotiations.

Interested firms are directed to KeNHA’s Deputy Director, Supply Chain Management, at Barabara Plaza, JKIA. Firms preparing to bid can track openings through our construction tenders in Kenya and consultancy tenders lists, and should budget for a tender security on large works. Our tender alerts service sends new notices by email.

Lake Victoria Basin roads package five covers the Eldoret–Kapsabet highway
The Eldoret–Kapsabet road, part of the 100km Chavakali–Kapsabet–Eldoret package. Photo: Endesia94 / Wikimedia Commons, CC BY-SA 4.0

Homa Bay reviews the designs

Homa Bay Deputy Governor Danish Onyango led a forum with KeNHA, county officials and national government administration officers on 13 November 2026 to review the preliminary designs for the Lake Victoria Basin roads. The county said its share is “an approximately 174-kilometre road network” which, with fibre, would open up fish landing sites and Ruma National Park, “connecting 3-4 million livelihoods and unlocking over 1.1 billion USD in access, trade and connectivity”. The National Land Commission’s Homa Bay coordinator, Violet Odawa, also took part.

KeNHA is running other big road jobs at the same time, including the Rironi–Naivasha road. Contact details for its western offices are in our KeNHA regional offices list.

Frequently asked questions

What is the Lake Victoria Basin Connectivity and Development Project?

It is a KeNHA project to upgrade about 815km of roads and lay 815km of fibre optic cable in Migori, Homa Bay, Kisumu, Siaya, Busia, Vihiga, Nandi and Uasin Gishu, plus truck stops, export hubs and border facilities.

How much will the Lake Victoria Basin roads cost?

The government plans to borrow about US$1 billion, roughly KSh 130 billion, from the World Bank. The financing has not yet been approved.

Which roads are included?

Muhuru Bay–Sori–Nyagwethe (176km), Nyagwethe–Mbita–Homa Bay (174km), Awasi–Katito–Otonglo–Asembo (188km), Asembo–Nyamonye–Port Victoria–Mulwanda (177km) and Chavakali–Kapsabet–Eldoret (100km).

How can contractors bid?

KeNHA will run an initial selection of contractors for design-build contracts. Specific tender notices will be posted on the World Bank and KeNHA websites and in national newspapers.

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About Author

Norah Waceke is a business journalist and editor at Business Radar with more than eight years of experience covering Kenya's economy, companies and markets. She previously worked at one of Kenya's leading digital news platforms, where she reported on business, finance and current affairs. A graduate of Multimedia University of Kenya, Norah focuses on clear, accurate reporting that helps readers understand the money stories shaping their lives and businesses.

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