The government has signed a Sh221 million loan for the upgrade of a key road linking Garissa and Mandera counties.
Kenya National Highways Authority (Kenha) says the funds will be used in design review, tendering, and supervising the construction of the Nuno-Modogashe Road.
It is a loan grant from Kuwait Fund, the OPEC Fund, Saudi Fund, and Abu Dhabi Fund and the Arab Bank for Economic Development in Africa.
Kenha director-general Meshack Kidenda said the road will be turned into a two-lane single carriageway of bituminous standard.
“Once completed, the road will open up these areas for production, and ease transportation of produce and livestock,” said Mr Kidenda.
The 135km road connects Garissa, Isiolo, Wajir, and Mandera.
Started in 2010, the project now expected to be completed in 2016, was initially estimated to cost Sh8 billion ($100 million).
The government is expected to fund the project to a sum of Sh5.36 billion ($67 million) with loans from these organisations. The taxpayer is set to foot Sh1.84 billion ($23 million).
The entry of the Bank provided an additional Sh800 million ($9.83 million) through loans under a 30-year regime at one per cent interest.
It targets strengthening the African-Arab co-operation and linkages.