• This is year's donation has been increased to Sh9 billion from current Sh8 billion.
• Lamu was among the 10 municipalities to benefit from the program following a nationwide competition.
The British government has increased its allocations for the Sustainable Urban Economic Development in Kenya.
The announcement was made by UK's Secretary of State for International Development Rory Stewart in Lamu on Thursday.
He was speaking when he signed an MoU with Lamu Governor Yassin Twaha to launch the programme in the county.
According to Alice Simpson, Head of Communications at the British High Commission, this year's support has been increased to Sh9 billion from current Sh8 billion.
"Following a nationwide competition, 10 municipalities were selected to benefit from the programme (53 submitted proposals)," said in a statement following the event in Lamu.
Lamu was among the 10 counties to benefit from the program following the nationwide competition.
Stewart said the additional Sh1 billion will allow it to support an additional two municipalities under the SUED program.
SUED is a five-year programme supported by the British Government through the Department for International Development (DFID).
Under the programme, municipalities will receive a package of support to help them deliver climate-smart urban growth, attract investment, create jobs and build infrastructure, for the benefit of local people.
"The programme will support the successful municipalities to develop sustainable urban economic plans and attract investment for critical infrastructure and value chain projects," Simpson's statement said.
The fund aims at strengthening capacity at the municipality level to plan better for urbanization, support policy and legislative changes to enable greater private sector-led growth.
It also aims at raising investment for critical bankable, climate-resilient infrastructure and value chain projects remains the core objective for the program.
The funds are also used to develop and test capacity at municipality level to maintain key activities after the programme ends.
It is also used to create climate-resilient jobs, improve rural links with larger markets that were previously difficult to access and poise municipalities for climate-resilient and sustainable growth.