The project, which included a GIS platform to manage urban transport data, was aimed at easing the city’s growing traffic problems.
The National Treasury’s report for FY 2026/27–2028/29 revealed that Nairobi’s transport initiatives under the Kenya Millennium Development Fund (KMDF) have stalled due to changes in U.S. foreign aid policies. This delay has affected critical parts of Nairobi’s multimodal transport system.
The project was first planned in 2023 when President William Ruto visited the U.S. and signed an agreement with former President Joe Biden.
The project was expected to be completed by June 2027. Under the plan, the U.S. was to provide Ksh5.8 billion, while Kenya would contribute Ksh1.56 billion.
The Nairobi Metropolitan Area (NMA) Multimodal Transport System was designed to improve coordination across the city’s transport networks and support long-term urban planning. It aimed to ease traffic congestion, promote safer and greener transport options, and support economic growth.
However, progress has been slow. The GIS platform, intended to provide a digital framework for managing traffic and infrastructure, is only 30 percent complete.
Key components, such as zoning regulations and integrated policy guidelines for Nairobi, are also behind schedule.
The Treasury has indicated that stalled projects will be reconsidered under the Nairobi Metropolitan Area Transport Authority (NaMATA) in the next financial year, pending resolution of funding issues.
The cancellation comes after President Trump took office, causing changes in U.S. foreign aid priorities. Several bilateral agreements and aid programs, including USAID initiatives, have been affected.
Urban planners and transport experts have warned that Nairobi’s growing population and vehicle numbers make these projects critical.
Without proper coordination and data management, traffic congestion and transport inefficiencies are expected to worsen.
“This was a crucial project for Nairobi’s long-term transport planning,” said a city planner familiar with the initiative.
“Delays and cancellations will set back efforts to improve commuting, reduce accidents, and make the city more liveable.”
The KMDF projects in Nairobi were part of broader agreements covering healthcare, education, security, climate, and trade. While these other sectors continue, urban transport faces significant delays due to the halted funding.
President Ruto had emphasized the importance of these projects during his U.S. visit in 2023, describing them as essential for modernizing Nairobi and making it a smart, connected city.
The cancellation, however, now forces the government to seek alternative funding or scale down project ambitions.
Despite the setback, Nairobi’s authorities plan to continue efforts to improve transport infrastructure.
The NaMATA will explore options to complete parts of the project and improve traffic management using locally sourced funds or alternative international partners.
Nairobi residents, who have long struggled with traffic jams, expressed disappointment. Many commuters said delays in implementing the transport system mean longer travel times, higher transport costs, and increased stress.
As Kenya navigates this funding challenge, experts urge the government to prioritize completing key transport initiatives, ensuring that future projects are insulated from political changes in donor countries.
The cancellation of the Ksh7.76 billion transport project is a stark reminder of the challenges Kenya faces in urban planning and international collaboration.
Completing Nairobi’s transport upgrades remains vital for the city’s economic growth and quality of life.