The Government of Kenya has signed a $60,000,000 Threshold Grant Agreement with the Millennium Challenge Corporation (“MCC”), called the Kenya Urban Mobility and Growth Threshold Program. MCC is a U.S. government agency focused on assisting countries dedicated to good governance, economic freedom, and investing in people. The agreement with Kenya seeks to assist in addressing limited connectivity in urban areas, a critical constraint to inclusive economic growth. Analysis, conducted jointly by MCC and the Government of Kenya, revealed that Kenya’s urban areas—particularly in the capital city, Nairobi—did not enjoy the significant productivity gains frequently associated with urbanization. Limited planning and a lack of prioritization in investments related to land use and transportation undermine connectivity and lead to fragmentation, limiting productivity among manufacturing firms in Nairobi and between workers and economic opportunities.
The Threshold program will address this constraint through four projects: The Integrated Transport Planning Project, the First and Last Mile Connections Project, the Detailed Land Use Project, and the Blended Finance for Bus Rapid Transit (BRT) Project.
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