Thursday, September 21, 2017
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Council of Governors secures billions for infrastructure development in Counties

World Bank CoGCouncil of Governors in joint partnership with Ministry of Transport, Infrastructure,Housing and urban development has secured USD 300 Million financing for infrastructure development across 45 County Governments.

The funds under the Kenya Urban Support Program to be financed by World Bank will see USD270 Million go directly to 45 County Governments while USD30 Million will support the National Ministry.

The objective of the program is to establish and strengthen urban institutions to deliver improved infrastructure and services in participating Counties in Kenya.

The programme is expected to provide direct support to all counties other than the City Counties of Nairobi and Mombasa, and to 59 potentially eligible urban areas within the 45 counties. Council of Governors’ Urban Planning Department-Symbio-City Programme-has been working with Urban Development Department (UDD) in the Ministry of Transport, Infrastructure, Housing and Urban Development (MTIHUD) and the World Bank to prepare this programme which will now be tabled before World Bank Board for approval and subsequent roll out.
The primary beneficiaries of the programme are the 5.6 million residents of the 59 urban centers, half of whom are women. By achieving this objective, the program is expected to contribute to the Country’s over-arching goals of ending extreme poverty and promoting shared prosperity by delivering improved urban infrastructure on an inclusive basis and in ways that enhance economic growth and development in participating Counties. Achievement of this objective will also make a significant contribution to attaining SDG 11 on sustainable and resilient cities.
The key design Features of the Programme are:-
1. Window 1 of the programme will support National Government in fulfilling its urban development Mandate as stipulated in the Constitution of Kenya 2010. The window will support the National Government in establishing and strengthening the institutional and policy framework for urban management. Activities will be led or coordinated by the Urban Development Department within the Ministry of Transport, Infrastructure, and Housing and Urban Development.
The total program allocation under this window will be $30 Million over the next 6 years.
2. Window 2 will provide support to County Governments in the formulation of urban development plans, for the establishment and operation of urban institutional arrangements and for the initial preparation of urban infrastructure investments. Program support for window 2 will take the form of Urban Institutional Grants to County Governments, which will be accessed by counties provided that they meet basic minimum conditions (MCs). The most important Conditions to be met by counties will be the preparation of a county urban institutional development strategy (CUIDS). The CUIDS will specify how the county intends to address urban management issues and will include an annual action plan and budget outlining the proposed use of the Urban Institutional Grants. Window 2 will also enable County Governments to promote urban development within their jurisdictions, by establishing and strengthening urban institutions (for example, municipal boards, municipal administrations) and by integrating urban development challenges and opportunities into county-wide development strategies and plans. The total programme allocation under this Window will be US$500,000 per county spread over three years. Funds under this window will be channeled directly from the National Treasury to County Governments.
3. Window 3 will provide support to urban boards and administrations through their respective County Governments for financing infrastructure investments in urban areas. This support will take the form of Urban Development Grants, conditional grants budgeted for by the National Government and transferred to the County Governments to support earmarked investments by the County Governments in specific urban areas participating in the program. The grants will be made available to the 59 eligible urban areas provided that they meet Minimum Conditions and as a function of their performance. The Minimum Conditions for Urban Development Grants will be focused on compliance with:
institutional benchmarks, such as the granting of a municipal charter to the urban area in question, the appointment of a municipal board/administration and the inclusion of a separate urban area vote in the County budget and
Program-specific benchmarks such as urban area governance issues such as citizen participation and public disclosure of urban finances; urban area planning, infrastructure, and service delivery benchmarks such as implementation performance, plan formulation, and actual provision of basic urban services. The grants will be used by qualifying urban institutions to finance a broad range of infrastructure investments. Eligible investments will include waste management, drainage, connectivity infrastructure, urban economic infrastructure, and fire and disaster management. The prioritization and selection of urban investments will take into account: (i) citizen participation; (ii) social inclusion requirements, including gender and disability considerations; (iii) climate change and disaster adaptation; and (iv) economic viability. The total programme allocation under this Window will be US$ 270 Million for the next six years.

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