The African Development Bank (AfDB) has approved a $326m loan for the second phase of the ongoing project to connect a highway between Kenya and Ethiopia.

Building the Mombasa–Nairobi–Addis Ababa Road Corridor, involves a 438km road including a 245km Merille river–Marsabit–Turbi section in Kenya and a 193km Ageremariam–Yabelo–Mega section in Ethiopia.

The corridor construction is aimed at cutting down transport and shipping costs and travel time for imports and exports between the two East African countries, and is expected to provide faster connectivity in the Horn of Africa region.

AfDB project team leader and chief transportation engineer Amadou Oumarou said the project is a continental priority under the Trans-African Highway Network.

The project is also being funded by the European Union and the Ethiopian and Kenyan governments.