KUSP I

The Kenya Urban Support Program (KUSP I) was a transformational initiative launched in 2018 by the Government of Kenya (GoK), in collaboration with the World Bank, to enhance urban development and governance in Kenyan municipalities. The program was designed to support county governments in strengthening urban institutions, improving service delivery, and investing in sustainable infrastructure to foster economic growth and social well-being.

With a total funding of $300 million, KUSP I focused on empowering 59 municipalities across 45 counties by financing critical urban projects, strengthening local governance, and ensuring sustainable urbanization in alignment with Kenya’s Vision 2030 and Sustainable Development Goals (SDGs).

Objectives of KUSP I

The Kenya Urban Support Program (KUSP I) was designed to address the growing challenges of urbanization in Kenya, ensuring that urban areas become well-managed, productive, and livable.

Establishing municipal structures, improving urban planning, and ensuring sustainable urban management in county governments.

Ensuring that urban planning and development projects align with community needs through participatory decision-making processes.

Investing in road networks, non-motorized transport, street lighting, drainage, and solid waste management to improve the quality of life in municipalities.

Developing green urban spaces, flood management systems, and energy-efficient street lighting to enhance climate adaptation in municipalities.

Supporting market development, urban renewal, and SME growth to boost trade and business opportunities.

KUSP I Program Structure

To effectively achieve its objectives, KUSP I was structured into three key funding windows, each addressing different aspects of urban development. This multi-pronged approach ensured that municipalities received the necessary financial and technical support for both governance reforms and infrastructure development, leading to sustainable urbanization across the participating counties.

These funding windows played a crucial role in urban governance enhancement, service delivery improvements, and infrastructure investments, allowing municipalities to become more efficient, self-sustaining, and responsive to urban challenges.

Window 1: National-Level Support

Managed by the Urban Development Department (UDD) under the State Department for Housing & Urban Development.
Provided policy formulation, technical guidance, and capacity-building to county governments.
Supported the development of urban charters, spatial plans, and governance structures.

Window 2: Urban Institutional Grants

Provided direct financial support to county governments to establish and strengthen urban institutions.
Funded the creation of municipal boards, town planning frameworks, and urban management strategies.
Helped counties meet constitutional and regulatory requirements for urban governance.

Window 3: Urban Development Grants

Financed large-scale urban infrastructure projects, including:
- Urban roads and public transport networks.
-Non-motorized transport (NMT) systems – pedestrian and bicycle pathways.
- Public markets, street lighting, and waste management facilities.
- Drainage and sanitation infrastructure to reduce urban flooding.
Funding was performance-based, ensuring municipalities met governance and project implementation standards.

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KUSP I

Objectives of KUSP I

KUSP I Program Structure

Window 1: National-Level Support

Managed by the Urban Development Department (UDD) under the State Department for Housing & Urban Development.

Provided policy formulation, technical guidance, and capacity-building to county governments.

Supported the development of urban charters, spatial plans, and governance structures.

Window 2: Urban Institutional Grants

Provided direct financial support to county governments to establish and strengthen urban institutions.

Funded the creation of municipal boards, town planning frameworks, and urban management strategies.

Helped counties meet constitutional and regulatory requirements for urban governance.

Window 3: Urban Development Grants

Funding was performance-based, ensuring municipalities met governance and project implementation standards.

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