A new distribution of conditional funding has seen county governments receive Sh6.73 billion under the Kenya Urban Support Programme Phase Two to finance development works in towns and municipalities during the 2025/2026 financial year.
The allocations were published in a gazette notice dated February 6, 2026, where National Treasury Cabinet Secretary John Mbadi confirmed that the financing is sourced from the International Development Association-World Bank credit and will be directed to selected urban centres across the country.
“The allocations are intended to empower municipalities and county administrations to implement key urban development projects that directly benefit local communities,” reads the notice.
Kiambu County emerged with the highest allocation of Sh1.61 billion, which will be shared among Ruiru, Kikuyu, Thika, Juja, Kiambu town and Limuru. Garissa County follows with Sh626 million distributed between Garissa town and Dadaab, while Kajiado County received Sh418 million to support Kitengela, Ngong and Oyugis. Kisumu County secured Sh411 million to finance projects in Kisumu city and Ahero town.
Several other counties also received funds for their urban centres. Bomet County was allocated Sh19 million for Bomet town, while Bungoma County will use Sh49 million in Kimilili municipality. Embu County received Sh59 million for Embu town and Homa Bay County was allocated Sh60 million to support Homa Bay town.
Kericho County secured Sh53 million for its central town, while Kilifi County received Sh156 million for Malindi and Kilifi towns. Kirinyaga County will use Sh38 million in Kerugoya, and Kisii County’s Sh110 million is meant for Kisii town. Kitui County has Sh50 million to be shared between Kitui and Mwingi, while Kwale County will direct Sh96 million to Ukunda and Kwale town.
Laikipia County was allocated Sh93 million for Nanyuki and Rumuruti, and Lamu County received Sh25 million for its main town. Machakos County secured Sh374 million for projects across Machakos town, Mavoko and Kangundo. Makueni County’s Sh40 million will benefit Wote and Emali/Sultan Hamud, while Mandera County was allocated Sh172 million for Mandera town and El Wak.
Migori County will use Sh135 million across Migori town, Rongo, Awendo and Kachab. Murang’a County received Sh78 million to be shared between Murang’a town and Kenol. Nakuru County was allocated Sh234 million for Naivasha, Gilgil and Nakuru town, while Nandi County secured Sh41 million for Kapsabet town.
Nyamira County received Sh24 million for Nyamira town, and Nyandarua County was allocated Sh41 million for Ol Kalau. Nyeri County secured Sh78 million for its main town, while Siaya County’s Sh55 million will support development in Siaya and Bondo. Tharaka-Nithi County was allocated Sh80 million for Kathwana.
Turkana County received Sh667 million to support projects across Chuka, Lodwar and Kakuma, while Uasin Gishu County was allocated Sh466 million for Eldoret town.
Vihiga County will use Sh21 million for Mbale, Wajir County received Sh88 million for Wajir town, and West Pokot County secured Sh28 million for Kapenguria.
The gazette notice states that the funds are ring-fenced for urban infrastructure and municipal development in the named towns and municipalities, with an emphasis on proper use of public resources and accountability by county administrations.
