Kenya Pushes Sh30bn Isiolo–Modogashe Highway Despite Political Friction

Construction crews are moving earth along the Northeast corridor, even as Nairobi debates whether the project is truly on schedule. Work is underway on the Sh30 billion Isiolo–Modogashe highway, a critical artery intended to stitch together the volatile border regions of Kenya. The 200-kilometer stretch forms the backbone of a much larger regional initiative known as the Horn of Africa Gateway Project, aiming to transform how goods and people move through East Africa. But while machinery hums on site, conflicting reports from top officials suggest the timeline isn't as smooth as press releases indicate.

The road is supposed to cut through Isiolo, Meru, Wajir, Garissa, and Mandera counties—areas historically haunted by insecurity and smuggling routes. Officials say the highway will do more than just pave asphalt; it includes laying fibre optic cables along the corridor to boost connectivity. Yet, the politics surrounding the build are becoming as tangled as the terrain. President William Ruto recently declared the broader project was at 40 percent completion, brushing off critics. However, Deputy Prime Minister Gachagua told Parliament in February 2026 that work had effectively stalled on parts of the Isiolo–Mandera route.

The Numbers Behind the Dust

To understand the scale, you have to look at the specifics rather than the spin. The immediate project spans two major sections. The first is the 77-kilometer Isiolo–Kulamawe leg, which the Kenya National Highways Authority says is 45 percent done. The second, longer stretch runs from Kulamawe to Modogashe, covering 123 kilometers and sitting at 40 percent completion. Combined, these roads feed into the massive 740-kilometer gateway plan.

The money trail is just as complex. The total price tag for the full gateway project sits at Sh83.7 billion. Construction duties have been handed to China State Construction Engineering Corporation Ltd, a firm with significant experience in African infrastructure. Financing comes largely from the World Bank. Documents show Kenya is set to receive a credit of $750 million from the International Development Association, with $150 million earmarked specifically for this corridor during the year. It's a heavy investment for a region that has struggled to attract capital.

Compensation and Local Impact

Infrastructure rarely moves without displacing lives. One of the more contentious aspects of the build is handling residents who lose land or assets along the path. Interior Cabinet Secretary Kipchumba Murkomen has tied the project's success to enhanced security, arguing that better roads allow police to patrol more effectively. Still, the social cost needs addressing. The World Bank has approved Sh500 million to compensate displaced persons.

According to Paul Omondi, Deputy Director at KeNHA, payments were scheduled to begin in December 2025. "We are glad that the World Bank has financed the compensation package," Omondi stated, citing the funding for loss of assets and restoration of livelihoods. As of May 2025, KeNHA confirmed receipt of funds, signaling that the government is attempting to balance hard engineering with social responsibility.

Conflicting Signals from Leadership

Here's the twist that complicates the narrative: different arms of the same government aren't giving the same answer. While President Ruto insists progress is solid, Deputy Prime Minister Gachagua claimed construction works stalled in February 2026. This kind of public disagreement is unusual for a flagship project costing hundreds of millions of dollars. It raises eyebrows among investors watching Nairobi closely.

Despite the friction, the broader vision remains aligned with the Lapsset Corridor initiative. That strategy seeks to turn Isiolo town into a resort city and commercial hub, not just a transit point. If completed by the target year of 2027, the corridor could drastically reduce travel time to the Somali border. The ripple effects would touch everything from trade tariffs to regional stability.

What Happens Next?

The next phase involves market engagement for sections 2 and 3 of the wider 750-kilometer Isiolo-Mandera highway. KeNHA has already announced plans to begin these stages, though the exact budget adjustments remain under wraps. For now, the priority is clearing the backlog on compensation and ensuring the contractors meet their milestones before the dry season hits.