The African Development Bank has approved $326m for the second phase of the Mombasa-Nairobi-Addis Ababa road corridor project between Kenya and Ethiopia.

The project is co-financed by the bank and the European Union as well as the Ethiopian and Kenyan Governments.

The 438km road includes the 245km Merille River-Marsabit-Turbi road section in Kenya and the 193km Ageremariam-Yabelo-Mega road section in Ethiopia.

The project will improve transportation and reduce transport and shipping costs between the regions.

In addition, the link will promote trade and regional integration between Ethiopia and Kenya as well as the eastern Horn of Africa.

The project is designed to address the development constraints caused by poor transport infrastructure and regional interconnectivity.

The first two phases of the project are mostly in the north-east arid and semi-arid region of Kenya and the Oromia region of Ethiopia.