The government of Kenya has been dealt a major blow after the U.S. government cancelled the construction of a Ksh7.76 billion GIS platform to manage urban transport data aimed at easing traffic congestion in Nairobi.
The developments emerged after the government published the National Treasury’s Energy, Infrastructure, and ICT Sector Working Group Report for FY 2026/27–2028/29, where it emerged that the Nairobi transport projects under the Kenya Millennium Development Fund (KMDF) have stalled due to shifts in U.S. foreign aid policy, which has delayed critical initiatives in the city’s multimodal transport system.
According to the report, the Nairobi Metropolitan Area (NMA) transport plans, which included the development of the GIS platform to manage urban transport data, were initially scheduled for completion but remain partially implemented.
The project has been in the pipeline since 2023, when President William Ruto visited the U.S. and inked a deal with former U.S. President Joe Biden, and the government had plans to complete it by the June 2027 fiscal year.
Under the initial plan, of the Ksh7.76 billion allocated for the project, the United States was to contribute Ksh5.8 billion, while Kenya would provide an additional Ksh1.56 billion.
The KMDF NMA Multimodal Transport System was designed to improve coordination across Nairobi’s transport networks and support long-term urban planning.
The project was expected to significantly ease Nairobi’s traffic woes, which have been exacerbated by a rapidly growing population and the resulting surge in demand for vehicles and transport services.
Additionally, the project, part of broader agreements covering healthcare, education, security, climate, and trade, was expected to enhance urban connectivity, promote green and safer transport options, and drive economic growth.
However, the GIS platform, expected to provide a comprehensive digital framework for traffic and infrastructure management, has only reached 30 per cent completion.
At the same time, it has become apparent that plans to develop zoning regulations and integrated policy guidelines for the metropolitan area were also impacted, with several targets remaining unmet.
Meanwhile, the Treasury has indicated that the stalled projects would be reconsidered under the Nairobi Metropolitan Area Transport Authority (NaMATA) in the next financial year, pending resolution of external funding issues.
The cancellation adds to a growing list of bilateral agreements and aid initiatives disrupted since Trump took office, including the introduction of trade tariffs and executive orders that have affected other key projects such as USAID programmes.
