The World Bank Board has approved a $550 million fund to support the development and upgrading of trade routes across the Horn of Africa.
In a press statement, the World Bank said that the funds will enhance connectivity between trades and reduce the travel time as well as the cost.
According to the multilateral lender, among the development projects, two of the projects will ensure that traders can travel between Nairobi and Mandera in a day, unlike the normal travel time of three days at a lower cost.
In addition, the combined International Development Association (IDA) financing will be used to upgrade approximately 508 km of the 740 km Isiolo–Mandera Corridor.
Approximately 1,270 km of new high-capacity fiber-optic connectivity will also be delivered through the IDA financing.
“ The combined International Development Association (IDA) financing will upgrade 508 km of the 740 km Isiolo–Mandera Corridor and deliver approximately 1,270 km of new, high-capacity fiber optic connectivity,” part of the statement read.
Total financing required to upgrade the 740 km Isiolo–Mandera road corridor, according to the Bank, was valued at $550 million, including $290 million for the Horn of Africa Gateway Development project (HoAGP) and $260 million for the second development project in the Horn of Africa.
Also Read: World Bank Downgrades Kenya’s 2026 Growth Estimate
World Bank Interventions on Trade Route
World Bank Division Director for Kenya, Rwanda, Somalia, and Uganda Qimiao Fan has stated that the interventions by the Bank will not only enhance connectivity but also support livelihoods.
Additionally, the developments will create job opportunities and strengthen resilience in fostering inclusivity.
Qimiao also added that the development of the undeserved regional road corridors will help in creating security and economic growth for disadvantaged communities with high poverty levels.
The project will also facilitate access to seaports, enhancing domestic and regional trade and economic integration, and improving road safety, according to the Director.
Also Read: World Bank Explains Why International Investors Are Turning to Kenya
Project implementation
During the project, the relevant government institutions will fully mainstream the activities to ensure effectiveness, as agreed under the Horn of Africa Gateway Project (HoAGP), the parent project.
Select Agency will integrate project activities into its regular operations, with the agencies responsible for their respective components.
Additionally, the Ministry of Roads and Transport will provide overall coordination and monitoring to build strong institutional ownership and enable efficient project preparation.
However, for the implementation to be successful, commitment from the Kenyan government will be required.
According to the Bank, the government of Kenya will provide timely counterpart funding during the project.
In addition, the government will also effectively manage environmental and social risks in the project areas.
Payment to the public in the project area, including affected people, contractors, suppliers, and consultants, will be made by the Kenyan government.
