Kenya and Ethiopia Finalize Lamu–Addis Ababa Corridor Financing

Kenya and Ethiopia have secured $3.2 billion in funding from the African Union and Arab investors to complete the Lamu–Addis Ababa Transport Corridor. The deal, finalized in March 2024, covers the remaining 800km of road, railway, and oil pipeline linking Lamu Port to Ethiopia’s hinterland. China Exim Bank and the Saudi Fund for Development are key financiers. The corridor—part of LAPSSET—is expected to cut Ethiopia’s cargo costs by 30% and boost Kenya’s transit revenue to $500 million annually. Environmental and land compensation issues in Lamu and Isiolo are being addressed through community trusts. Construction resumes mid-2024 after a five-year stall, creating 15,000 jobs.