The African Development Bank (AfDB) has granted a $166m (KES12.5bn) loan to Kenya to help build a road connecting the country with Ethiopia in order to enhance cross-border trade.

The 123km road in northern Kenya will form the second phase of a longer corridor linking the Kenyan port city of Mombasa to the Ethiopian capital of Addis Ababa.

The 136km first phase of the road corridor is under construction.