ABN - Kenya will build a 530km highway stretching from the Eastern coast to the centre of the country, in a US$620 million deal which will boost the East African nation's position as a regional trading hub.
The project will be delivered by a consortium including a unit of South Africa’s Group Five and the Development Bank of Southern Africa, who will work closely with the state throughout the construction work.
Kenyan’s Cabinet Secretary James Macharia said the road will link Lamu on the coast to Isiolo, North of Nairobi, via Garissa. “The signing of this agreement shows continued confidence of international investors and its economic stability,” he said.
The project will be funded through the public private partnership model, with the Kenyan government hoping to attract more private investment to maintain infrastructural development and spending on highways and railways.
Kenya is aiming to strengthen its position as a regional trade and transport hub with several transport developments that will open up trade routes to landlocked countries such as Burundi, Rwanda and Uganda.
Construction on the highway will begin in mid-2018, with the consortium set to operate and maintain the road for 25 years after it has opened.