Kenya has unlocked funds to address challenges limiting connectivity in urban areas and strengthen the land sector.
The Millennium Challenge Corporation (MCC) and government officials led by President William Ruto signed a $60 million Kenya threshold program agreement designed to improve urban connectivity and promote economic growth. According to a State House statement, the funds will aid in acquisition of electric buses to operate on the bus rapid transit (BRT) line 2 to ease traffic congestion within the Nairobi Metropolitan Area.
“This grant from Millennium Challenge Corporation (MCC) to the Government of Kenya is the largest and one of the most ambitious threshold programs that MCC has ever implemented with a partner country,” Millenium Challenge Corporation (MCC) CEO Alice Albright said.
“It reflects MCC’s confidence in Kenya to address its own challenges to economic growth and is yet one more symbol of the longstanding relationship between our two countries.”
MCC threshold programs are grants that allow partner countries to demonstrate their commitment to democratic governance, economic freedom, and investments in their people through targeted policy reforms and capacity building programs. In doing so, partner countries focus resources and support to tackle constraints to economic growth.
“The signing ceremony marks an exciting milestone in the growing partnership between Kenya and the United States,” said President Ruto.
MCC and the Government of Kenya jointly designed the Kenya threshold program to address challenges that limit connectivity in urban areas. The program is focused on Nairobi, where it aims to strengthen institutions and support improvements in long-term planning for integrated, accessible and safer transportation and land use. Among its features, the program will focus on the transportation needs of pedestrians and develop more visible transportation options for women. The program will also provide financing support for the acquisition of climate-friendly buses for the emerging bus rapid transit (BRT) network.
“The Government of Kenya is committed to the activities and reforms that make up our Threshold Program, which we jointly designed with MCC,” said Njuguna Ndung’u, Cabinet Secretary, National Treasury and Economic Planning of Kenya, upon signing the agreement. “This planned investment will strengthen our transport and land sectors and will generate benefits for the people of Nairobi, as well as for all Kenyans.”
The Millennium Challenge Corporation is an independent U.S. government agency working to reduce global poverty through economic growth. Created in 2004, MCC provides time-limited grants and assistance to countries that meet rigorous standards for good governance, fighting corruption and respecting democratic rights.