The Kenyan government has suffered a significant setback after the United States cancelled funding for a Ksh7.76 billion urban transport management project that was expected to ease Nairobi’s chronic traffic congestion.
Details of the stalled initiative emerged in the recently released Energy, Infrastructure, and ICT Sector Working Group Report for the FY 2026/27–2028/29, published by the National Treasury.
According to the report, key components of the Nairobi transport modernisation plan under the Kenya Millennium Development Fund (KMDF) have ground to a halt following a shift in Washington’s foreign aid priorities under the Trump administration.
The project—originally conceptualised in 2023 during President William Ruto’s visit to the United States and approved under former President Joe Biden—was anchored on the development of a Geographic Information System (GIS) platform to manage and integrate urban transport data across the Nairobi Metropolitan Area (NMA).
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Under the initial agreement, the United States committed Ksh5.8 billion, while Kenya pledged Ksh1.56 billion to complete the project by June 2027. However, the Treasury report reveals that implementation remains at just 30 per cent, with several core deliverables unfulfilled.
The GIS platform was intended to create a unified digital framework to coordinate Nairobi’s complex transport ecosystem, including road, rail, non-motorised transport, and future mobility options.
Officials had expected the system to streamline planning, reduce inefficiencies, promote safer and greener transport solutions, and significantly ease traffic congestion that has long plagued the capital.
The cancellation now jeopardises these ambitions, particularly since the broader multimodal transport system was a flagship component of long-term metropolitan planning. It was also part of a larger bilateral cooperation package covering areas such as healthcare, education, climate action, digital innovation, and security.
The Treasury further indicates that the effects of the funding freeze extend beyond the GIS platform. Plans to develop zoning regulations, metropolitan transport policy guidelines, and integrated planning frameworks were also disrupted, leaving several milestones unmet.
Government sources say the project’s collapse is directly linked to changes in U.S. foreign assistance policy after President Donald Trump assumed office.
Since taking power, Trump has introduced new restrictions affecting foreign aid, imposed fresh trade tariffs, and issued executive orders that have slowed or halted multiple bilateral initiatives, including USAID programmes and technical cooperation schemes.
Transport experts warn that the stalled project could exacerbate Nairobi’s urban mobility challenges, as the city’s population continues to grow while infrastructure struggles to keep pace with demand. Nairobi loses billions of shillings annually to traffic-related delays, fuel wastage, and reduced productivity.
Despite the setback, the Treasury maintains that the government is considering alternative avenues to revive the project.
The Nairobi Metropolitan Area Transport Authority (NaMATA) is expected to take a lead role in reassessing and potentially resubmitting the initiative for funding in the next financial year, depending on the resolution of external financing complications.
The cancellation adds to a widening list of bilateral agreements disrupted under the current U.S. administration, raising concerns over the fate of other Kenya–U.S. partnerships initiated during the Biden era
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