The U.S. has halted its contribution to Nairobi’s Ksh7.76 billion multimodal transport project, originally approved during President William Ruto’s 2023 visit to the United States. According to the National Treasury’s Energy, Infrastructure, and ICT Sector Working Group Report for FY 2026/27–2028/29, shifts in U.S. foreign aid policy have stalled the project, leaving key initiatives in Nairobi’s transport system incomplete.
The Nairobi Metropolitan Area (NMA) transport plans, funded under the Kenya Millennium Development Fund (KMDF), were designed to improve urban mobility, streamline traffic management, and support long-term city planning. Of the total project budget, the U.S. was to contribute Ksh5.8 billion, while Kenya would provide Ksh1.56 billion.
A significant component of the project was the development of a Geographic Information System (GIS) platform aimed at managing urban transport data. However, the platform has only reached 30% completion, delaying efforts to develop integrated zoning regulations and transport policies for the metropolitan area.
The project was expected to ease Nairobi’s chronic traffic congestion, a problem worsened by rapid population growth and increased vehicle demand. It also formed part of broader agreements between Kenya and the U.S., covering healthcare, education, security, climate, and trade, with the goal of boosting economic growth and promoting greener, safer transport solutions.
The Treasury has stated that the stalled projects may be reconsidered under the Nairobi Metropolitan Area Transport Authority (NaMATA) in the next financial year, pending resolution of external funding issues. This development follows a trend of disruptions in bilateral agreements and aid initiatives since shifts in U.S. policy, including previous interruptions to USAID programmes and trade-related measures.
As Nairobi’s residents continue to face traffic challenges, the delay in implementing the multimodal transport system highlights the critical role of stable external funding in urban infrastructure projects. The city’s long-term mobility and connectivity plans now hinge on renewed commitments and policy alignment between Kenya and its international partners.
