The Ministry of Lands, on Tuesday, July 4, announced that the government had applied for credit from the World Bank, amounting to Ksh 49 billion, equivalent to approximately 350 million USD.
A notice by the State Department for Housing and Urban Development revealed that the loan would be designated to facilitate President William Ruto's government to undertake the second phase of the Kenya Urban Support Programme (KUSP2).
The government will allocate Ksh1.4 billion towards the implementation of the project as part of the funding model.
According to the department under the Ministry of Lands, the project's main focus will be the development of infrastructure in urban centres across the country, sanitation and solid waste management.
"The government intends to apply part of the proceeds to payments for goods, works, non-consulting services and consulting services to be procured under this project.
"Some of the project components include urban development national policies, capacity building and program management and will support implementation at the national level by directly financing activities that contribute towards the delivery of the Program outcomes," read the notice in part.
Conversely, the government also detailed that the programme will target some of the infrastructural development in refugee camps.
The government presented its proposal to the World Bank on June 15, based on the project details obtained by Kenyan.co.ke.
Upon approval, the funding will be disbursed in instalments until June 30, 2028.
President Uhuru Kenyatta unveiled the Kenya Urban Support Programme (KUSP) project in 2017 with an eye on developing major cities and towns in the country.
In the first phase, projects were undertaken in Nairobi, Mombasa, Kisumu, Nakuru and Eldoret.
Kenya received Ksh42 billion in funding for the first project.