KUSP II has marked significant milestones through strategic engagements, targeted inductions, and critical stakeholder collaboration, paving the way for sustainable urban development across Kenya’s counties.

P R O G R A M M E  U P D A T E      |    URBAN INSTITUTIONAL  GRANT (UIG)   J U N E  2 0 2 6

In a milestone for Kenya’s urban governance reform agenda, all 45 county governments participating in the Second Kenya Urban Support Programme (KUSP2) have satisfied every one of the five Urban Institutional Grant (UIG) Minimum Conditions (MCs) assessed during the Second Annual Performance Assessment (APA2). This perfect compliance record — achieved across counties as diverse in geography and urbanisation profile as Marsabit, Kwale, Kisumu, and Bungoma — is not merely a procedural milestone. It is a powerful signal that Kenya’s devolved system of urban governance is starting to mature, and that county governments are genuinely invested in the sustainable development of their urban areas.

The results, independently verified by Alpex Consulting Africa Limited (ACAL) and cleared by the World Bank through a Quality Assurance Review, unlock Ksh. 27 million in UIG grants for each of the 45 counties — a total national disbursement of approximately Ksh. 1.22 billion.

Garissa and Turkana counties, which host Kenya’s two major refugee settlements at Dadaab and Kakuma-Kalobeyei respectively, have also met the WHR-UIG MCs and will each receive an additional Ksh. 65 million under the Window for Host Communities and Refugees (WHR) — resources that will directly support the integration of refugee settlements into sustainable urban systems.

The UIG grants now being disbursed will finance the institutional and capacity building activities that counties have committed to in their CUIDS and annual workplans: training of staff, development of planning tools, review of HR systems, and preparation for the more demanding future UIG and Urban Development Grant (UDG) assessments.

The APA 2 UDG and WHR-UDG results will follow in the next phase of reporting. These assessments, which evaluate whether municipalities have functioning institutional structures, adequate core staff, approved development plans, and functioning citizen engagement mechanisms, will determine the allocation of infrastructure financing for urban service delivery projects across the country.

APA3 is the next milestone on the horizon. Counties and municipalities that have completed the institutional groundwork assessed in APAs 1 and 2 will be well positioned. Counties with weak climate resilience sections in their CUIDS are encouraged to undertake the recommended reviews ahead of the next cycle — including developing clear action plans that address both climate mitigation and adaptation challenges specific to their urban contexts. Similarly, counties where delegation of functions to urban boards remains limited are encouraged to take concrete steps to close this gap before APA3.

Read more..https://kusp.go.ke/jifabuh/2026/06/UIG-Article-Final.pdf