Kenya secures Sh 8.7 billion second threshold fund to aquire electric buses for the Bus Rapid Transit

New York, 

Wednesday, 20 September, 2023 

McCreadie Andias 

Kenya and the Millennium Challenge Corporation (MCC) have signed a USD 60 million (Ksh 8.7 billion) second threshold programme Fund that will enable Kenya aquire electric buses to operate on the bus rapid transit (BRT) line 2. 

Witnessing the signing at the UNGA sidelines, President William Ruto said Kenya is keen on working with Development patners to Deploy innovative transport solutions that will help to boost the country’s Economy.

"An efficient public transport system improves economic productivity. We are working with development partners to deploy innovative transport solutions that increase the competitiveness of our economy and improve the welfare of our people. This will attract investment to the country, create opportunities and raise the quality of life," President Ruto stated in a post on his x page. 

The signing was done by Kenya's Cabinet Secretary for Treasury Prof. Kamau Thuge and Millennium challenge Corporation CEO Alice Albright. 

The deal will see Kenya ease congestion along the Nairobi Metropolitan area which has been ever experiencing trafficking congestion due to heavy commuter activities. 

Earlier in April this year, Kenya had secured its first threshold of KSh50 billion ($377 million) from a consortium of European agencies to build a dedicated electric bus lane in Nairobi in a move to decongest the city. 

The funding birthed the construction of the Bus Rapid Transport (BRT) lane which is also the first in East African and the first of the five expected to be constructed in Kenya. 

The deal was signed in Brussels following President William Ruto's visit in the European Union a deal that included KSh6.47 billion ($48.79 million) EU grants and Ksh 33.9 billion ($255.64 Million) joint funding from the European Investment Bank (EIB) and French Development Agency (AFD) while the Kenyan Government sourced KSh9.5 billion ($71.64 million), taking the figure to $377 million.

The declaration of intention to finance the electric bus line was signed by EU Commissioner Jutta Urpilainen and Kenya's Transport Cabinet Secretary Kipchumba Murkomen.

The project started from Kenyatta National Hospital and progresses to Haile Selassie Avenue into the Central Business District, continues on Racecourse Road to Ring Road Ngara to Juja Road and then ends in Dandora.

The projects comprised 10 main components which include bus running ways, bus stations, bus depot, station access supporting infrastructure including pedestrian bridges, fare collection and validation systems.

Other components are a bus fleet (110-articulated buses), interchange stations for feeder bus services, park-and-ride facilities, a BRT control room, and a real-time passenger information system.