Trump Administration Cancels Sh7.7bn Nairobi Road Deal Signed by Ruto and Biden
Kenya’s plans to modernise Nairobi’s transport system have suffered a major blow following the U.S. government’s decision to cancel funding for a Ksh7.76 billion Geographic Information System (GIS) platform intended to manage urban transport data and reduce the city’s notorious traffic congestion.
The cancellation was revealed in the recently published National Treasury’s Energy, Infrastructure, and ICT Sector Working Group Report for FY 2026/27–2028/29. The report highlights that key Nairobi transport projects under the Kenya Millennium Development Fund (KMDF) have stalled, citing shifts in U.S. foreign aid policy as the primary cause of delays to critical initiatives in the city’s multimodal transport system.
“The Nairobi Metropolitan Area transport plans, including the GIS platform, were scheduled for completion but remain partially implemented,” the report stated. “The delays reflect changes in external funding commitments, particularly from our U.S. partners.”
The GIS platform project has been in development since 2023, following a high-profile visit by President William Ruto to the United States, where he signed an agreement with then-President Joe Biden. At the time, the government planned to complete the initiative by the June 2027 fiscal year. Of the total Ksh7.76 billion budgeted, the U.S. was expected to contribute Ksh5.8 billion, while Kenya would provide Ksh1.56 billion.
Designed under the KMDF NMA Multimodal Transport System framework, the project aimed to improve coordination across Nairobi’s transport networks, support long-term urban planning, and introduce a digital framework to manage traffic and infrastructure. Officials had projected that it would significantly ease congestion in Kenya’s rapidly growing capital, where rising population numbers have increased demand for vehicles and public transport services.
“This project was intended to transform Nairobi’s transport landscape,” said an official from the Ministry of Transport, speaking on condition of anonymity. “It would have facilitated better traffic management, integrated planning, and promoted greener, safer transport options.”
The GIS platform, however, has only reached 30 per cent completion. Simultaneously, other related initiatives, including zoning regulations and integrated metropolitan policy guidelines, have been delayed, leaving several planned targets unmet.
The Treasury has indicated that the stalled projects may be reconsidered under the Nairobi Metropolitan Area Transport Authority (NaMATA) in the next financial year, pending the resolution of external funding challenges.
The latest setback adds to a series of disruptions in bilateral agreements and aid initiatives since changes in U.S. administration policies, including the introduction of trade tariffs and modifications to USAID programmes.
Analysts warn that the delay could have wider implications for Nairobi’s urban development strategy. “Delays in infrastructure and transport planning slow economic growth and affect daily life for millions of Nairobi residents,” said Dr. James Mwangi, an urban planning expert.
As Kenya seeks alternative funding sources and attempts to revive stalled projects, city commuters may have to contend with worsening traffic congestion in the interim.
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Trump Administration Cancels Sh7.7bn Nairobi Road Deal Signed by Ruto and Biden