- Thirty-five counties are set to share KSh 6.73 billion in targeted funding for urban development under the second phase of a major World Bank-backed programme
- The Kenya Urban Support Programme Phase Two – Urban Development Grant will channel funds directly to municipalities to address infrastructure and service gaps in fast-growing towns
- Kiambu, Turkana, and Garissa counties emerged as the top beneficiaries, receiving allocations exceeding half a billion shillings each for their municipalities
Elijah Ntongai is an experienced editor at TUKO.co.ke, with more than four years in financial, business, and technology research and reporting. His work provides valuable insights into Kenyan, African, and global trends.
The National Treasury has officially gazetted the disbursement of KSh 6.73 billion to 35 county governments for urban development in the 2025/2026 financial year.
Source: UGC
The funds, a conditional grant from the World Bank’s International Development Association (IDA), will be implemented under the Kenya Urban Support Programme Phase Two (KUSP-II).
In a Gazette Notice dated February 6, 2026, Treasury Cabinet Secretary John Mbadi outlined the specific allocations for 54 municipalities across the 35 beneficiary counties.
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The funding will be directed to address critical urban infrastructure and service delivery needs.
Which counties received the largest share of the urban grant?
The allocations were heavily weighted towards counties with major municipalities and those hosting rapidly growing urban centres.
Kiambu county received the single largest allocation of KSh 1.61 billion, to be shared among seven municipalities: Ruiru (KSh 480m), Kikuyu (KSh 317m), Thika (KSh 246m), Karuri (KSh 190m), Juja (KSh 153m), Kiambu Town (KSh 145m), and Limuru (KSh 80m).
Turkana county was allocated KSh 667.3 million, with the vast majority (KSh 586.1m) going to Kakuma Municipality and KSh 81.3 million to Lodwar Municipality.
Garissa County received KSh 626.5 million, split between Garissa Municipality (KSh 1.24 billion initially indicated, later clarified as KSh 626.5m) and Dadaab Municipality (KSh 490.4m).
Other top beneficiaries include Uasin Gishu (Eldoret – KSh 465.9m), Kajiado (KSh 418.6m across Kitengela, Ngong, and Kajiado), and Nakuru (KSh 234.5m for Naivasha and Gilgil).
What is the purpose of the Kenya Urban Support Programme grant?
The Kenya Urban Support Programme (KUSP) is a World Bank-funded initiative designed to strengthen urban management and improve infrastructure and service delivery in selected Kenyan municipalities.
The “Urban Development Grant” is a conditional allocation, meaning counties and municipalities must meet specific criteria to access and utilise the funds, ensuring they are spent on approved urban development projects.
The grant aims to support investments in essential urban infrastructure such as road networks, water and sanitation systems, street lighting, public markets, and solid waste management to cater for growing urban populations.
Counties allocated funds from the World Bank Urban Development Grant
County | Municipality(s) | Allocation per Municipality (KSh) | Total Allocation per County (KSh) | |
1 | Bomet | Bomet | 19,044,620 | 19,044,620 |
2 | Bungoma | Kimilili | 49,407,730 | 49,407,730 |
3 | Busia | Busia | 70,407,851 | 87,275,953 |
Malaba | 16,868,092 | |||
4 | Embu | Embu | 58,869,660 | 58,869,660 |
5 | Garissa | Garissa | …. | 626,456,027 |
Dadaab | 490,422,771 | |||
6 | Homa Bay | Homa Bay | 41,823,504 | 59,779,860 |
Oyugis | 17,956,356 | |||
7 | Kajiado | Kitengela | 151,260,425 | 418,590,989 |
Ngong | 249,806,907 | |||
Kajiado | 17,523,657 | |||
8 | Kakamega | Kakamega | 105,022,156 | 146,101,727 |
Mumias | 41,079,572 | |||
9 | Kericho | Kericho | 52,697,661 | 52,697,661 |
10 | Kiambu | Ruiru | 480,041,957 | 1,611,152,325 |
Kikuyu | 317,221,229 | |||
Karuri | 190,345,862 | |||
Juja | 152,832,423 | |||
Kiambu | 144,829,438 | |||
Limuru | 79,643,948 | |||
Thika | 246,237,469 | |||
11 | Kilifi | Malindi | 85,110,948 | 156,035,028 |
Kilifi | 70,924,260 | |||
12 | Kirinyaga | Kerugoya | 38,382,201 | 38,382,201 |
13 | Kisii | Kisii | 110,105,437 | 110,105,437 |
14 | Kisumu | Kisumu | 389,774,049 | 411,539,329 |
Ahero | 21,765,280 | |||
15 | Kitui | Kitui | 28,464,416 | 50,229,696 |
Mwingi | 21,765,280 | |||
16 | Kwale | Ukunda | 74,186,375 | 95,951,655 |
Kwale | 21,765,280 | |||
17 | Laikipia | Rumuruti | 21,765,280 | 93,081,070 |
Nanyuki | 71,315,790 | |||
18 | Lamu | Lamu | 24,863,023 | 24,863,023 |
19 | Machakos | Machakos | 62,455,797 | 374,333,215 |
Mavoko | 287,335,650 | |||
Kangundo Tala | 24,541,768 | |||
20 | Makueni | Wote | 21,765,280 | 39,643,958 |
Emali/Sultan Hamud | 17,878,678 | |||
21 | Mandera | Mandera | 112,359,123 | 171,842,327 |
El Wak | 59,483,204 | |||
22 | Migori | Migori | 70,194,334 | 135,490,174 |
Rongo | 21,765,280 | |||
Awendo | 21,765,280 | |||
Kehancha | 21,765,280 | |||
23 | Murang’a | Murang’a | 42,423,360 | 78,046,436 |
Kenol | 35,623,076 | |||
24 | Nakuru | Naivasha | 194,363,515 | 234,500,794 |
Gilgil | 40,137,279 | |||
25 | Nandi | Kapsabet | 41,133,441 | 41,133,441 |
26 | Nyamira | Nyamira | 23,979,571 | 23,979,571 |
27 | Nyandarua | Ol Kalou | 21,765,280 | 40,809,900 |
Engineer | 19,044,620 | |||
28 | Nyeri | Nyeri | 78,434,342 | 78,434,342 |
29 | Siaya | Siaya | 32,471,295 | 54,716,282 |
Bondo | 22,244,987 | |||
30 | Tharaka-Nithi | Kathwana | 58,373,502 | 80,301,151 |
Chuka | 21,927,649 | |||
31 | Turkana | Lodwar | 81,263,938 | 667,324,573 |
Kakuma | 586,060,635 | |||
32 | Uasin Gishu | Eldoret | 465,934,137 | 465,934,137 |
33 | Vihiga | Mbale | 21,221,148 | 21,221,148 |
34 | Wajir | Wajir | 88,262,999 | 88,262,999 |
35 | West Pokot | Kapenguria | 27,883,609 | 27,883,609 |
GRAND TOTAL | ||||
6,733,422,216 |
The success of the programme will depend on the capacity of county governments and municipal boards to efficiently absorb and implement the funds in line with the stipulated conditions and development plans.
Counties allocated KSh 11.2b for Climate Resilience Projects
In related news on devolved funding, the National Treasury allocated KSh 11.2 billion in climate resilience grants to 46 counties for the 2025/2026 financial year.
Kakamega, Homa Bay, and Bungoma counties were the top beneficiaries of the fund, which combines World Bank and German Development Bank loans with mandatory county contributions for local projects in adaptation and mitigation.
Notably, Nairobi and Mombasa counties received zero allocation from that specific climate grant pot, indicating a focus on counties deemed more vulnerable to climate impacts like drought and agricultural disruption.
Proofreading by Jackson Otukho, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
