The State Department for Housing and Urban Development in partnership with the Treasury is set to establish a National Urban Development Fund to provide targeted financial support to cities and municipalities.
This move is aimed at accelerating Kenya’s urban transition and addressing funding gaps in infrastructure and service delivery.
According to the Director Urban Development Lillian Kieni, the actualization of the fund was one of the 13 resolutions of the first Kenya Urban Forum that took place in 2023.
“In the 2023 forum, we identified flaws, gaps and conflicts in laws supporting Urbanization, together with the relevant entities, we are now working towards harmonizing the laws to provide for safe, inclusive and sustainable Cities and Municipalities.” She noted.
Kieni spoke as preparations for the second Kenya Urban Forum (KUF 2) under the theme “The Future is Urban: Driving Kenya’s Urban Transformation” gathered pace with the event set to be held from 17th to 19th June 2025 in Naivasha, Nakuru County.
The rate of urbanization in Kenya is now at an estimated 4pc, Kieni warned that by 2050, half of Kenya’s population is projected to reside in urban areas, heightening the need for well-planned and adequately financed urban systems.
She therefore emphasised the need to provide resources to enhance growth in urban areas saying, “The Government continues to play its role in supporting urbanization through construction of Affordable Houses and the necessary infrastructure in urban areas. While this will provide decent housing for Kenyans, it also creates employment opportunities for the youth and a consumptive demand for the Jua Kali and manufacturing sectors.”
Kieni urged stakeholders to collaborate in solving persistent urban challenges such as waste management, traffic congestion, drainage, and spatial inequality, noting that urban areas must evolve into centres of innovation and economic opportunity.
Assistant Director Urban Development Mercy Kimani outlined the five key thematic areas that the Kenya Urban Forum 2025 will be anchored on;
Urban infrastructure and service delivery, Urban planning and Governance, Sustainable Development and climate resilience, Economic growth and job creation as well as Inclusive Urbanization and force displacement.
She said the forum seeks to have habitable Cities across the Country through empowerment of locals even as she challenged County Governments to create their own sources of revenue to support urbanization.
Senior Urban Economist at the World Bank, Carlos Mejia reaffirmed the Bank’s support, stating: “Livable cities are engines of growth. The World Bank is commitment in supporting KUF 2 and financing investments and growth in Cities and municipalities for better living conditions.”
KUF 2 is expected to build on the policy gains and momentum from the 2023 forum and shape a long-term vision for resilient, inclusive, and economically vibrant Kenyan cities.
