The project will include the widening of two sections of the highway, as well as upgrade intersections Martin Avenue and Willows Road.
The project is jointly funded, with the federal government investing $30 million and the Queensland Government committing to a $7.5 million investment.
Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Michael McCormack said the safety upgrades will help to provide greater safety and improved travelling times for motorists.
“The Kennedy Highway is a strategic link in Queensland’s road network, connecting mining, agriculture and tourism across Far North,” Mr McCormack said.
“Improving road safety and efficiency has far reaching benefits – for industry, holiday makers and local residents.”
Stage two of the safety upgrades will be delivered by Robinson Civil Group, a local construction company who will be supported by the 121 jobs created through the upgrades.
Robinson Civil Group Chief Executive Officer Caytlyn Mead said the project will be a great source of employment for local industries.
“Our goal is to support the local community, strengthen local industry, and grow the skilled workforce in regional Far North Queensland,” Mead said.
The project is expected to be completed by early 2022.