For anyone who has ever sat in a matatu on Mombasa Road at 8am, watching the same traffic light turn green and red while the queue barely moves, this news will sound like a dream.
A traffic light that watches the road. That counts cars. That measures how long people are waiting. And then, without anyone touching a button, changes its timing to clear the jam.
That is not science fiction. It is happening in Nairobi, starting this year.
The government has allocated Sh1.18 billion (about $9.1 million) in the 2026/27 national budget to expand Nairobi’s Intelligent Transport System (ITS) Phase III, a nearly tenfold increase from the current allocation of Sh116.1 million. The system will cover 125 intersections across the capital, linking them to a central control centre at City Cabanas along Mombasa Road.
And perhaps most dramatically, it will gradually reduce the need for traffic police officers at major junctions—replacing human whistle-blowing with automated, AI-powered enforcement.
What the AI Traffic Lights Actually Do
The technology is deceptively simple. Each smart junction will be equipped with cameras and road sensors that continuously analyse vehicle movement, passenger numbers, turning patterns, and congestion levels in real time.
Using artificial intelligence, the system automatically adjusts signal timings to ease build-up at overloaded junctions—without requiring officers to manually direct vehicles. “You don’t have to walk into a junction to adjust signal timings any more,” Kenya Urban Roads Authority (KURA) wrote in project documents. “Everything happens from the control room”.
Every smart junction will also be fitted with cameras capable of detecting vehicles and reading automated number plates. The system will identify red-light violations, speeding offences, helmet compliance among boda boda riders, and even determine the number of passengers inside vehicles, automatically transmitting detected offences for enforcement.
The Junctions That Will Get Smarter First
The rollout will prioritise Nairobi’s most notorious traffic bottlenecks. Among the intersections targeted are:
- Moi Avenue/Kenyatta Avenue
- Koinange Street/Kenyatta Avenue
- Raila Odinga Way/Lang’ata Road
- Limuru Road/Muthaiga Road
These are junctions where rush-hour queues stretch for kilometres and where, on bad days, a single stalled matatu can paralyse an entire neighbourhood for hours.
The Timeline: 20/50/100
The government has set a clear phased completion schedule:
- 20 percent of the 125 junctions completed in the 2026/27 financial year (starting July 2026)
- 50 percent completed in 2027/28
- Full completion by 2028/29
Treasury projections show the State plans to spend at least Sh5.3 billion on the project over the next three financial years, signalling a decisive shift from road expansion to technology-driven traffic management.
Who Is Building It
The project is being implemented by the Kenya Urban Roads Authority (KURA). In May 2026, KURA’s Director General Silas Kinoti visited the Chinese contractor China Wu Yi in Beijing to discuss project progress and coordination. The contract, awarded to a joint venture between China Wu Yi and Huawei, carries a 36‑month timeline with expected completion by 2029.
The project includes smart upgrades at 125 junctions plus a traffic data centre. Once completed, it will deliver “adaptive traffic signal control and full electronic law enforcement coverage, improving traffic efficiency, reducing congestion, and cutting waiting times at intersections”. KURA describes the third phase of ITS as marking “the full integration of Nairobi’s traffic ecosystem,” linking all intersections to the central control system at Cabanas.
Samsung Construction is separately building a Traffic Management Centre and an Integrated Transport System headquarters that will coordinate traffic lights across 25 junctions in the first phase, with plans to expand coverage to 65 junctions in subsequent phases. The facility will oversee traffic signal control, data collection, and a smart parking management system. It will also support detection of speeding, red‑light violations, and other dangerous driving patterns.
Emergency vehicles such as ambulances, fire engines, and police units will be granted automated “green corridors,” allowing traffic lights to turn green along their routes and potentially saving critical response time.
Where the Money Is Coming From
The Sh1.18 billion allocation for Phase III will come primarily from external sources. Budget documents show about Sh1.1 billion will come from a concessional loan, while the exchequer contributes only Sh75 million. That loan is part of a broader $185 million (Sh23.9 billion) facility that Treasury CS John Mbadi signed with the Export‑Import Bank of China in November 2025 to finance the wider smart traffic management programme.
This is not the only financing source. The project has also attracted backing from South Korea. In early 2026, Kenya’s Cabinet sanctioned the Nairobi ITS Establishment and Junction Improvement Project, backed by Sh7.9 billion in financing from South Korea’s Export‑Import Bank, targeting 125 intersections with 25 major junctions due for completion by February 2027. The Korean government is also backing the construction of BRT Line 5, linking Nairobi’s City Centre to JKIA, currently at the final approval stage at the National Treasury.
The Enforcement Piece: Cameras That Fine You Instantly
The AI traffic system is just one part of a larger automated enforcement push. In February 2026, the National Transport and Safety Authority (NTSA) commenced the nationwide rollout of the Intelligent Transport Management System (ITMS)——1,000 high‑definition smart cameras (700 fixed units, 300 mobile units) monitoring major highways including Thika Superhighway, Mombasa Road, and the Southern Bypass.
The system issues instant digital fines via SMS for offences including speeding (exceeding the limit by 16–20 km/h triggers a Sh10,000 fine), driving on pavements (Sh5,000), mobile phone use while driving (Sh2,000), and illegal PSV boarding (Sh3,000 for drivers, Sh1,000 for passengers).
However, the rollout has encountered a legal hurdle. In early June 2026, a Kerugoya High Court temporarily halted the implementation of the smart driving licence and automated instant traffic fines system, citing concerns over constitutional rights, including the right to privacy and access to information.
What This Means for Contractors
For builders and civil works contractors, the ITS project presents several opportunities—but they may not be the kind of contracts you are used to.
First, the heavy civil work is limited. The project primarily involves installing cameras, sensors, fibre optic cabling, and control equipment at existing junctions. This is not road construction. It is technology installation. General contractors without electrical, IT, or telecoms experience will need to partner with specialists.
Second, the pipeline is phased. The 20/50/100 completion schedule means work will stretch over three years. Contractors who secure early phases will be well positioned for follow‑on work.
Third, the control centre is a construction opportunity. The Traffic Management Centre at City Cabanas and the Integrated Transport System headquarters being built by Samsung Construction involve physical construction—office space, data centre infrastructure, power backup systems, and security installations. Civil contractors with experience in mission‑critical facilities should be watching.
Fourth, KURA is the client. KURA manages urban roads across Kenya. Contractors interested in ITS work should ensure they are registered on KURA’s procurement portal and have experience with similar technology projects.
Fifth, the broader BRT construction is coming. BRT Line 5 from the city centre to JKIA—backed by Korean funding and currently awaiting final Treasury approval—involves dedicated bus lanes, stations, drainage works, and pedestrian infrastructure. This is traditional civil construction. Contractors who miss the ITS opportunity should position themselves for BRT.
Sixth, cross‑city replication is likely. If Nairobi’s ITS succeeds—and the government is betting Sh5.3 billion over three years that it will—other Kenyan cities will follow. Kisumu has already installed its first traffic lights on major roundabouts, with plans to integrate them into a wider traffic management system with surveillance cameras and real‑time monitoring. Mombasa, Nakuru, and Eldoret will not be far behind.
Seventh, the South Korean connection matters. The Korean government is not only financing the ITS and BRT Line 5; it is also establishing a permanent mission in Nairobi’s Lavington area. For contractors, this signals a deepening partnership that could generate future Korean‑backed infrastructure contracts across multiple sectors.
Eighth, the Chinese connection continues. With Huawei as a key technical partner on the ITS project, Chinese contractors have a strong foothold. Local firms seeking to participate should explore subcontracting or joint venture arrangements with Chinese companies already on the ground.
The Bottom Line
Nairobi’s traffic problem is not going to be solved by building more roads. The city is too dense, too constrained, and too late. The solution is to make the existing roads work smarter—and that is what the Sh1.18 billion ITS Phase III aims to do.
For contractors, the message is clear. The work is shifting from concrete and asphalt to cameras, sensors, fibre, and software. General contractors who adapt—by partnering with tech firms, upskilling their teams, or bidding on the physical infrastructure components like control centres and power systems—will find opportunities. Those who wait for the next road expansion project may find themselves left behind.
The traffic lights are getting smarter. The question is whether you are ready to build what they need.
| Key Data Point | Detail |
|---|---|
| Total allocation (2026/27) | Sh1.18 billion ($9.1 million) |
| Previous allocation | Sh116.1 million |
| Increase | Nearly 10x |
| Total over 3 years | Sh5.3 billion minimum |
| Junctions covered | 125 |
| Phase III completion target (2026/27) | 20% |
| Phase III completion target (2027/28) | 50% |
| Full completion | 2028/29 |
| Implementing agency | Kenya Urban Roads Authority (KURA) |
| Main contractor | China Wu Yi / Huawei joint venture (36‑month timeline) |
| Alternative contractor | Samsung Construction (Traffic Management Centre) |
| Primary financing source | $185 million (Sh23.9 billion) loan from Exim Bank China |
| Secondary financing source | Sh7.9 billion from Korea Exim Bank |
| Control centre location | City Cabanas, Mombasa Road |
| BRT Line 5 status | Awaiting final Treasury approval |
| Nationwide traffic cameras | 1,000 units (700 fixed, 300 mobile) |
| Instant fine examples | Speeding (Sh10,000), driving on pavement (Sh5,000), phone use (Sh2,000) |
| ITS Phase I | 25 junctions (Samsung) |
| ITS Phase II | 65 junctions (projected expansion) |
| ITS Phase III | 125 junctions (full citywide integration) |
