The scheme forms part of the Dunbeg Corridor Strategic Masterplan and will get underway on Monday, 29 January.
The 'masterplan' sets out ambitious plans for sites between Dunbeg and Ganavan. As well as road improvements, the strategy includes 600 new homes, retail and commercial development, green spaces, playparks and landscaping.
A total of 300 homes will be developed in subsequent phases of work over the next six years subject to full planning consent being given. The council said the majority of these houses will be 'affordable' including barrier free homes and homes for single occupiers.
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Cllr Elaine Robertson said: "This is a significant occasion. These improvements will make a real difference to the local community, and will enable this very important housing development to be progressed.
"Not only will Kirk Road be widened, but a pavement and street lighting will also be installed. These are things the community have told us are important to them.
"We want to encourage people to live, work and visit this beautiful area and are committed to economic growth that benefits everyone. During the works, traffic management will be in place and we would like to thank everyone for their patience and understanding whilst the improvements take place."
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