Municipalities play a key role in implementing urban development projects, enhancing governance, and improving service delivery. They receive financial and technical support under KUSP II to strengthen urban resilience, infrastructure, and economic growth.

KUSP II supports 59 municipalities across 45 counties in Kenya. These municipalities benefit from funding for urban infrastructure, institutional strengthening, and smart city projects.

Funds are disbursed through:

• Urban Development Grant (UDG) – Supports infrastructure projects like roads, drainage, and markets.
• Urban Institutional Grant (UIG) – Enhances governance, municipal planning, and service delivery capacity.

Municipalities must meet performance-based criteria to access and utilize these funds.

Municipalities do not apply directly for funding. Instead, funding is allocated based on performance assessments conducted annually. To qualify, a municipality must:

• Meet urban governance and service delivery benchmarks.
• Show effective use of previous funding.
• Align projects with sustainable urban development goals.

Municipalities are assessed regularly using key performance indicators (KPIs) in areas such as:

• Project Completion Rates – Infrastructure development progress.
• Governance & Compliance – Institutional strengthening and policy adherence.
• Financial Accountability – Proper use of funds and transparent reporting.
• Sustainability Practices – Environmental and climate resilience measures.

Municipalities implement a range of urban development projects, including:

• Roads & Transport – Expansion of bitumen roads, NMT lanes, and bus terminals.
• Street Lighting – Installation of solar-powered streetlights for improved security.
• Markets & Business Centers – Development of modern market spaces for traders.
• Waste Management – Establishment of solid waste collection and recycling systems.
• Water & Drainage – Improvement of water supply and stormwater drainage networks.
• Green Spaces – Creation of parks and recreational areas.