The national government has allocated KSh6.7 billion for the upgrade of 63 towns and municipalities, which will be implemented through the Kenya Urban Support Programme Phase Two (KUSP II), according to a gazette notice published this week. The funding, which belongs to the 2025/26 budget, will be used to develop essential infrastructure and security enhancements and climate-adaptive systems in all expanding metropolitan areas throughout the country.
The World Bank-supported credit facility will provide funds to counties, according to Treasury Cabinet Secretary John Mbadi, because counties will use those funds to construct roads and drainage systems and street lighting and markets and waste management facilities in selected municipalities. The counties must present detailed project proposals, which they will follow through with procurement procedures before they can receive funds according to the terms of these conditional grants.
Kiambu County emerges as the biggest beneficiary, which will receive KSh1.61 billion for development projects in seven towns that include Ruiru, Thika, and Juja. Turkana received KSh667.3 million, and Garissa received KSh626.4 million, while Uasin Gishu, Kajiado, and Kisumu counties obtained important funding.
The urban development blueprint of the program seeks to repair roads while it creates drainage systems, which will protect against flooding, and installs streetlights, which will ensure safety during nighttime, and modernizes public markets to assist local businesses. The organization will develop better waste management systems to solve ongoing sanitation problems that occur during times of rapid urban development.
Government officials declared that funds must remain allocated for their intended purposes, while the national government and World Bank will oversee spending to confirm proper use of funds while assessing their effectiveness.
Local authorities and urban planners have designated the funding injections as essential support, which enables towns to overcome their infrastructure shortfalls, while they expect faster transportation and improved flood protection during rainstorms to enhance living conditions that will bring in new business investment.












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