The State Department for
Housing and Urban Development, in partnership with the Treasury, is in the
process of formulating the National Urban Development Fund to provide funding
for Cities and municipalities in support
of urbanisation.
Director of Urban Development Lillian Kieni said the actualisation of the fund was one of the 13 resolutions of the first Kenya Urban Forum that took place in 2023.
“In the 2023 forum, we identified flaws, gaps and conflicts in laws supporting urbanisation, together with the relevant entities, we are now working towards harmonising the laws to provide for safe, inclusive and sustainable Cities and Municipalities," she said.
She spoke as preparations for the second Kenya Urban Forum (KUF 2) under the theme “The Future is Urban: Driving Kenya’s Urban Transformation” gathered pace with the event set to be held from 17th to 19th June 2025 in Naivasha, Nakuru County.
Kieni said the rate of urbanisation in Kenya is now at an estimated 4%, and it’s expected that by 2050, half of the Country’s population will be living in Urban areas.
She has therefore emphasised the need to provide resources to enhance growth in urban areas, saying, “The government continues to play its role in supporting urbanisation through the construction of Affordable Houses and the necessary infrastructure in urban areas. While this will provide decent housing for Kenyans, it also creates employment opportunities for the youth and a consumptive demand for the jua kali and manufacturing sectors.”
She called on the stakeholders to join hands in addressing challenges such as waste management, poor transport management, drainage, among others, saying Urban areas must be transformed into centres of innovation.
Assistant Director Urban Development Mercy Kimani said the Kenya Urban Forum 2025 will be anchored on 5 thematic areas;
Urban infrastructure and service delivery, Urban planning and Governance, Sustainable Development and climate resilience, Economic growth and job creation and Inclusive Urbanisation and forced displacement.
She said the Forum seeks to have habitable Cities across the Country through the empowerment of locals, even as she challenged County Governments to create their own sources of revenue to support urbanisation.
Carlos Mejia, a senior urban economist from the World Bank, said liveable Cities are engines of growth, emphasising the World Bank’s commitment to supporting KUF 2 and financing investments and growth in Cities and municipalities for better living conditions.
