WASHINGTON, March 27, 2026 — The World Bank Board of Directors has approved new financing to advance connectivity, trade, and development across the Horn of Africa. 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.
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. These investments complement financing from other development partners, collectively ensuring that the entire 740 km Isiolo–Mandera road corridor is upgraded. The financing, totaling $550 million, includes $290 million in Additional Financing for the Horn of Africa Gateway Development Project and $260 million for the Second Horn of Africa Gateway Development Project .
"Regional road corridors in the Horn of Africa cross remote and underserved areas inhabited by disadvantaged communities with comparatively high poverty levels," said Qimiao Fan, World Bank Division Director for Kenya, Rwanda, Somalia and Uganda. "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."
The projects directly advance key Horn of Africa Initiative objectives, including enhancing connectivity among member countries and access to seaports, facilitating domestic and regional trade and economic integration, and improving road safety.
Implementation will be fully mainstreamed within the relevant government institutions, an arrangement that has proven effective under the parent project, the Horn of Africa Gateway Project (HoAGP). Each agency will integrate project activities into its regular operations and bear responsibility for its respective components, while the Ministry of Roads and Transport will provide overall coordination and monitoring. This approach has built strong institutional ownership and enabled efficient project preparation.
Successful implementation will require sustained commitment from the Government of Kenya, including the timely provision of adequate counterpart budgets, effective management of environmental and social risks in the project area, and prompt payment of project-affected persons, contractors, suppliers, and consultants.
Contacts
In Nairobi: Vera Rosauer, +254202936811, vrosauer@worldbank.org
In Washington: Daniella van Leggelo-Padilla, +1 (202) 473-4989, dvanleggelo@worldbank.org
