•The total amount of co-financing is expected to be more than $ 1.2 billion(Sh122 billion ) when subsequent phases of the project are concluded.
•This is in the form of African Development Bank and African Development Fund loans.
Kenya will benefit from a €345 million (Sh39.2 billion) financing package for road construction approved by the African Development Bank’s board in Abidjan last Thursday.
The funds which will also support projects in Tanzania are expected to benefit over three million people in the two countries.
The funding will go towards development of the Mombasa-Lunga Lunga- Horohoro and Tanga-Pangani-Bagamoyo roads Phase I.
This is in the form of African Development Bank and African Development Fund loans and represents 78.5 per cent of the total €399.7 million (Sh45.4 billion) project cost.
The European Union contributed a grant of €30 million(Sh3.4 billion) 7.7 per cent of the total project cost, to the government of Kenya. “The project will have spillover benefits for hinterland countries such as the Democratic Republic of the Congo, Burundi, Rwanda, Uganda and South Sudan that depend on Mombasa as gateway to global markets,” said Hussein Iman, the Bank’s Regional Sector Manager for infrastructure, private sector, and industrialization.
The road is a key component of the East African transport corridors network, connecting Kenya and Tanzania.
“Producers, manufacturers and traders will be able to move goods more quickly and cheaply. In addition, farmers and fishermen will benefit from improved access to local and regional markets and amenities, including better schools and health centres,” AfDB said in a statement.