African Development Bank Approves $232.5m For Key Tanzania-Kenya Road Project

Donald Kaberuka African Development Bank
Donald Kaberuka, head of the African Development Bank

AFRICANGLOBE – The African Development Bank has confirmed the approval of two loans totalling $232.5 million for a road project between Tanzania and Kenya.

The 157.5-kilometre road project starts from Arusha to Holili in Tanzania, and Taveta to Voi in Kenya. It is in an effort to reduce the cost of transport and enhance access to agricultural inputs, larger markets and social services within the East Africa Community.

According to the AfDB, Kenya will receive $113.12 million of the two loans approved by the AfDB Board, while Tanzania will be awarded $120 million.

The Bank facility constitutes 89.1 per cent of the total project cost, AfDB said in a statement.

The project, which officials say, is expected to be completed by December 2018, is also jointly financed by the Governments of Kenya and Tanzania both contributing $15.6 million and $12.3 million respectively.

The Africa Trade Fund has also extended a $740,000 grant for a small component for trade facilitation at the Namanga border, bringing to $262.2 million the total cost of the project.

The African Development Bank’s Regional Director for the East Africa Resource Centre, Gabriel Negatu stated that the Kenya-Tanzania road had been identified in the East African Regional Integration Strategy Paper (RISP 2011-2015) and the East African Transport Strategy and Regional Road Sector Development Programme of November 2011 as a priority for intervention.


By: Ekow Quandzie