Counties push for infrastructure fund allocation to support urban growth

National Treasury CS John Mbadi holds the Budget Briefcase at parliament, Nairobi, June 11, 2026. [Boniface Okendo, Standard]

County governments are warning of a major crisis in urban centres as rural-urban migration continues to rise, straining services such as sanitation, water delivery and waste management. 

Now, heads of municipalities in counties are seeking a share of funds collected through the National Infrastructure Fund (HIF) to develop infrastructure, promote economic development and attract investment.

This follows concerns over inadequate funding facing dozens of municipalities across the country, which has strained service delivery, including disaster response and security.

According to Raymond Kinyua, Chair of the County Executive Committee Members in charge of Lands and Planning, 50 per cent of Kenya's population will be living in urban areas within the next 20 years.

He said that the urbanisation rate had reached 3.4 per cent, creating a need for targeted funding for infrastructure such as roads, sewerage systems, street lighting and waste management to cope with the growing population.

"The national government should channel part of the National Infrastructure Fund towards developing robust infrastructure in cities and municipalities, enhancing good governance, promoting economic development and creating jobs for the youth," said Kinyua.

Speaking on the sidelines of the municipal forum in Naivasha, Kinyua said they were also pushing for amendments to the Physical Land Use and Planning Act to align urban funding with climate change resilience and social housing needs.

Naivasha Municipality Chair Peter Kimani said the high rate of urbanisation had brought a myriad of challenges to county units, which needed adequate resources to address them urgently.

Kimani said the lack of funding to cities and municipalities had affected emergency response, citing the absence of fire engines in Gilgil that hampered the response to the Utumishi Girls fire, where 16 students perished. 

He called for the inclusion of municipal heads in decision-making on town zoning to ensure that necessary infrastructure and amenities, including cemeteries and parks, are established.

According to Wanyonyi Buteyo, Chair of the Cities and Municipalities Forum Kenya, the three-day forum would unlock a framework for urban governance and planning as more people migrate to urban areas.

Buteyo said the forum, which brought together 113 municipal chairpersons, had called for the establishment of an urban development fund, a conditional grant to municipalities to enhance infrastructure and service delivery.

He said the fund would help the counties address strained sanitation and sewer systems, improve urban road networks and support urban agriculture.

Buteyo said municipalities favoured locally led resource frameworks over donor-supported programmes to build their capacity as the national government earmarks more functions for devolution.