Daniel K. Inouye Highway Expansion Enters Final Phase With New Interchange at Kona

Construction crews have begun the final phase of the Daniel K. Inouye Highway expansion on Hawaii Island, with a new full-service interchange near Kona expected to dramatically reduce commute times for West Hawaii residents.

The Hawaii Department of Transportation confirmed that the $87 million Phase 3 project will add two new lanes and construct a full diamond interchange at the Kealakehe Parkway junction, eliminating a bottleneck that has frustrated Big Island commuters for over a decade.

“This interchange alone is projected to save the average Kona commuter 25 minutes per day during peak hours,” said HDOT Director Ed Sniffen. “That’s real time back with your family.”

The expansion is the final leg of a larger $340 million project that has transformed the former two-lane Queen Kaahumanu Highway into a modern four-lane divided highway stretching from Kailua-Kona to the Kohala Coast resort district. Previous phases opened in 2023 and 2024.

Goodfellow Bros., the Maui-based contractor leading the project, has mobilized over 200 workers on site. The interchange will include dedicated turn lanes, pedestrian crossings, and a separated bike path connecting to Kona’s expanding trail network.

HDOT expects the interchange to open by December 2026, with final landscaping and signage completed by early 2027. During construction, motorists should expect intermittent lane closures on weekdays between 8:30 a.m. and 3:30 p.m.