The United States has cancelled a KSh7.7 billion transport modernization project in Nairobi, a flagship initiative approved during President Joe Biden’s administration and formalized during President William Ruto’s 2023 state visit to Washington.
According to Kenya’s National Treasury, the U.S. halted the agreement due to changes in its foreign aid policy, abruptly ending a project designed to transform how Nairobi manages and plans its transport systems.
The initiative—funded through the Kenya Millennium Development Fund and the Millennium Challenge Corporation (MCC)—was to be financed primarily by the U.S., with Kenya contributing a smaller portion. However, only 30 percent of the project had been completed by the time the cancellation was communicated.
What the Project Aimed to Deliver
The programme sought to introduce a GIS-based digital transport management system, empowering Nairobi to improve:
- Data-driven transport planning
- Traffic management
- Mobility coordination across multiple modes
- Long-term urban development strategies
Key components—including updated zoning regulations and new integrated transport guidelines—remain incomplete as a result of the termination.
Impact on Nairobi
The cancellation comes as Nairobi grapples with rapid population growth, worsening traffic congestion, and inadequate transport planning tools. The shelved system was expected to play a critical role in shaping long-term mobility and urban transport reforms.
The Kenyan government has not yet announced whether it will seek alternative funding or pursue a scaled-down version of the project.
