$550 Million World Bank Boost for Isiolo–Mandera Road and Fibre Optic Cables

By Ken Muthomi - Reporter

Kenya, 8 April 2026 - The World Bank Board of Directors has approved $550 million (about KSh 70 billion) in additional funding for the construction of the 740-kilometre Isiolo–Mandera Highway.

According to the lender, the funding will cater to the construction of 508 kilometres of the highway, as well as the installation of 1,270 kilometres of high-capacity fibre optic cables along the route.

“The World Bank Board of Directors has approved new financing to advance connectivity, trade, and development across the Horn of Africa,” the World Bank said.

“Two approved projects are expected to reduce travel time between Nairobi and Mandera from three days to one, while significantly lowering the cost of transport and trade,” it added.

The financing, which is being provided under the International Development Association, includes $290 million (Ksh37.6 billion) in additional funding for the Horn of Africa Gateway Development Project and $260 million (KSh 33.7 billion) for the Second Horn of Africa Gateway Development Project.

The projects are part of the Horn of Africa Initiative, which aims to enhance connectivity in the region, expand access to seaports, and facilitate regional trade and economic integration.

World Bank’s Division Director for Kenya, Rwanda, Somalia, and Uganda, Qimiao Fan maintained that these investments are targeting underserved areas that face high poverty levels.

These projects will play a fundamental role in enhancing connectivity, supporting livelihoods, creating jobs, and strengthening resilience, factors that will catalyse economic metamorphosis in the region.

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“Multisectoral interventions that enhance connectivity, support livelihoods, create jobs, and strengthen resilience are essential to fostering inclusion, a shared sense of benefits, and ultimately fostering greater peace, security and economic growth,” Fan said.

The World Bank noted that the successful implementation of the project will depend on the level of commitment demonstrated by the government, including the provision of adequate budgets, effective management of environmental and social risks, and prompt compensation of those affected by the project.

President William Ruto officially launched the project, which is part of the Lamu Port-South Sudan-Ethiopia-Transport (LAPSSET) Corridor project on Friday, 7 February 2025.

The Head of State said that the project is expected to be completed within the next two and a half years and will boost connectivity between Kenya, Ethiopia, and South Sudan.

The World Bank's International Development Association provided an initial KSh 81 billion for the commencement of the road network.