AfDB okays $228m for Kenya-Tanzanian Road

The African Development Bank (AfDB) has approved a $228 million loan to Kenya to rehabilitate a strategic road linking Western Kenya and Tanzania.

AfDB said in a statement on Friday that the renovation of the 172-kilometre road, linking the towns of Isebania and Ahero, an axis located southeast of Lake Victoria, will facilitate trade between Kenya and Tanzania.

“Lower transport costs will ensure that a greater share of the price of exported goods accrues to producers thereby increasing incomes and reducing poverty,” said Amadou Oumarou, AfDB’s Director of the Transport and ICT Department.

Oumarou said the strengthening of public transport is also part of the project, with the financing for construction of three bus stations, further facilitating the movement of people in the region.

The improvement works, which are to be undertaken from 2016-2019, are expected to reduce to half the travel time and transport costs between Isebania and Ahero.

The Isebania-Kisii-Ahero Road forms part of the Sirari Corridor, a major trade and transit route linking Tanzania, Kenya and South Sudan.

It serves as the main trade route between Mwanza port (Tanzania), Kisumu port (Kenya), and onward to Juba (South Sudan).

AfDB said the project will accelerate the socio-economic development of the regions along the road, benefiting nearly two million people. “The project implementation area is at the crossroads of several road corridors.

Once completed, the road will facilitate local and international trade, strengthening regional integration,” the statement said.

It said the road will open up new markets for agri-businesses and the fishing industry.

The project also includes funding for several markets along the road.