Landowners and families affected by the multi-billion-shilling Horn of Africa Gateway corridor to receive payouts starting December 2025 in a major resettlement milestone
Isiolo, Kenya| More than Ksh500 million in compensation payments will begin flowing to thousands of residents living along the strategic Isiolo–Garbatulla–Modogashe road corridor starting December 2025, marking one of the largest single resettlement exercises ever undertaken in northern Kenya.
The long-awaited payouts come as construction intensifies on the Ksh30 billion upgraded highway, a vital 204-kilometre stretch that connects Isiolo, Garbatulla, Sericho, and Modogashe towns across Isiolo and parts of Meru counties.
A Lifeline for Affected Households
Project officials confirmed that the compensation package targets households whose land, homes, crops, water points, grazing areas, and small businesses have been directly impacted by the road’s 60–120 metre right-of-way acquisition.
“These payments are designed to cushion families from the short- and long-term effects of displacement and loss of livelihoods,” said Eng. Peter K. Njagi, the Project Coordinator for the Kenya National Highways Authority (KeNHA) component of the Horn of Africa Gateway Development Project.
Compensation categories include:
- Full market-value payment for acquired land
- Disturbance allowance (15% of land value)
- Replacement cost for demolished structures
- Loss of crops and trees
- Temporary loss of business income
- Relocation and transport allowances
- Special assistance for vulnerable groups (elderly, persons with disabilities, female-headed households)
Part of the Ambitious 740km Horn of Africa Gateway
The Isiolo–Garbatulla–Modogashe road forms a critical segment of the 740-kilometre Horn of Africa Gateway Development Project, a World Bank-funded multinational corridor linking Kenya to Ethiopia and ultimately the port of Lamu via the LAPSSET transport network.
Once complete, the upgraded Class A highway will:
- Slash travel time between Isiolo and Modogashe from 5–7 hours to under 2 hours
- Boost cross-border trade with Ethiopia and Somalia
- Unlock economic potential in the vast pastoralist regions of northern Kenya
- Enhance security and emergency response along the porous frontier
The entire project is being implemented in phases, with the Isiolo–Modogashe section (Lot 2) being executed by Chinese contractor Jiangxi Communications Engineering Group at a cost of approximately Ksh30 billion.
Transparent Disbursement Process Underway
Verification and valuation teams comprising KeNHA officials, National Land Commission representatives, independent valuers, local administration, and community elders have been on the ground since early 2025 finalising the Resettlement Action Plan (RAP).
“All affected persons have undergone biometric registration and received individual disclosure of their entitlement,” a senior NLC official told journalists in Garbatulla. “Payments will be made directly into bank accounts or mobile money wallets to guarantee transparency and accountability.”
The first tranche of payments, expected before Christmas 2025, will cover more than 3,000 registered project-affected persons (PAPs) spread across Kinna, Garbatulla, Sericho, and Modogashe areas.
Community Reactions: Relief Mixed with Hope
Local residents expressed cautious optimism about the impending compensation.
“For years we feared losing everything without fair recompense,” said Fatuma Boru, a single mother of five whose compound in Sericho was partially acquired. “If the money comes as promised, we can rebuild and even start small businesses along the new highway.”
Pastoralist leaders have also welcomed the payouts but called for continued dialogue on grazing corridors and underpasses for livestock movement.
Next Steps and Broader Impact
Civil works on the road are progressing rapidly, with asphalt laying already visible between Isiolo and Oldonyiro and earthworks advancing toward Modogashe. The entire Isiolo–Modogashe section is slated for completion by late 2027.
When finished, the upgraded corridor is projected to lift thousands out of poverty by improving access to markets, healthcare, education, and security services in one of Kenya’s most marginalised regions.
As the first cheques are prepared, the compensation exercise serves as a powerful reminder that world-class infrastructure must go hand-in-hand with social responsibility and inclusive development.
For affected residents, December 2025 will not just mark the beginning of a smoother journey along a modern highway – it will also bring tangible recognition that their sacrifices are finally being honoured.
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