Residents along the 41.7km Mombasa-Mariakani road have opposed plans to expand it into a dual carriageway.
The residents said they will only allow the construction to go on as planned once they receive compensation.
Kenya National Highway Authority (KeNHA) Coast Regional Manager Jared Makori said the new project will cost Sh22 billion.
He, however, raised concerns over encroachment by traders.
“It is becoming very expensive to expand some parts of the road because of encroachment. Agencies like World Bank and Africa Development Bank are very strict on how we handle such cases in any project that they finance,” said Mr Makori, as quoted by Standard.
The residents, who are mainly traders said they are yet to receive compensation from the State despite raising the issue with the relevant authorities.
The road is expected to be expanded into a six lane dual carriage way, a project which will include construction of interchanges, service roads, truck parking, flyovers, bus bays, foot bridges for pedestrians and street lighting.
However, the project co-ordinator, Charles Obuon said those who have encroached on the road reserves will not be compensated.