The trade route between Kenya and South Sudan has received a significant boost after Kenya National Highways Authority (KeNHA) sealed a Sh28.8 billion deal to finance the upgrading of Morpus-Lokichar road section.

The road project has faced major setbacks, primarily due to financial constraints, including inadequate budget allocations and delayed disbursements from the National Treasury, slowing construction and forcing contractors to halt work intermittently. 

But the African Development Bank (AfDB) has committed to fund the project as a key financier. Delayed funds have, however, led to rising costs and frequent timeline adjustments. These financial struggles have raised concerns about cost overruns, making project completion uncertain.

The development is part of the broader Multinational Kenya – South Sudan Road Corridor Lesseru-Kitale and Morpus-Lokichar Road Upgrading Project Phase 1, aiming to enhance transport connectivity between the two nations.

“The Government of the Republic of Kenya has received financing from the African Development Bank and African Development Fund to finance the Multinational: Kenya South Sudan Road Corridor Lesseru-Kitale and Morpus-Lokichar Road Upgrading Project Phase 1,” KeNHA stated.

The targeted road sections, Lesseru–Kitale and Morpus–Lokichar, are integral components of the Lesseru–Nadapal–Kapoeta–Juba corridor in northwestern Kenya.

The project’s primary objective is to facilitate a more efficient, safe, and effective cross-border transport system, thereby deepening regional integration and trade. Improved infrastructure is expected to alleviate regional fragility and stimulate economic growth by providing reliable access to markets and resources.

“The Project Road, Lesseru Kitale and Morpus Lokichar Road Sections form part of the Lesseru – Nadapal-Kapoeta Juba corridor located in the North-Western region of Kenya,” it added.

Substantial oil fields

The enhancement of the Morpus-Lokichar road is particularly significant for the oil trade between Kenya and South Sudan.  Lokichar is home to substantial oil fields, with recoverable reserves estimated at 600 million barrels.

Efficient transportation infrastructure is crucial for the extraction and exportation of this resource.

The upgraded road is set facilitate the movement of oil from Lokichar to Lamu Port, a key component of the Lamu Port-South Sudan-Ethiopia-Transport (Lapsset) Corridor project. This corridor is designed to link Kenya, South Sudan, and Ethiopia, fostering economic integration and providing landlocked South Sudan with critical access to international markets.

The Lapsset project encompasses the construction of highways, railways, and oil pipelines, with Lamu Port serving as the maritime gateway. The integration of the Morpus-Lokichar road into this corridor highlights its strategic importance in the regional oil trade.

By improving the transportation network, the project aims to reduce logistical challenges and costs associated with oil exports, thereby enhancing the competitiveness of Kenyan and South Sudanese oil in global markets.

The financing from the AfDB reflects a broader trend of seeking diverse funding sources for infrastructure development in the region.

Notably, Kenya has initiated discussions with the United Arab Emirates (UAE) to secure financing for extending the Standard Gauge Railway (SGR) to connect Kenya, Uganda, and South Sudan. By Ian Okal, People Daily