Shortly after taking office for a second term, US President Donald Trump scrapped a $60 million (Sh7.76 billion) deal his predecessor signed with Kenya’s William Ruto, throwing the Nairobi Bus Rapid Transit (BRT) project into uncertainty.
New disclosures from the Treasury reveal that the Millennium Challenge Corporation (MCC) Threshold Program, originally earmarked for implementation in Kenya, is now slated for termination.
The agreement was signed on September 19, 2023 in New York and entered into force on May 23, 2024, following President Ruto’s state visit to the White House.
The programme, designed to run from January 7, 2024 to June 30, 2027, aimed to improve urban connectivity, promote economic growth, and provide safer, climate-friendly transport options for underserved groups in Nairobi.
Under the agreement, the US government, through MCC, was to contribute Sh5.8 billion, while Kenya committed Sh1.56 billion.
President Ruto’s White House visit in May 2024 saw at least four agreements signed with then US President Joe Biden, covering education, health, security, climate, and trade.
The MCC grant was a key component of the climate and urban transport deal, supporting safer and urban transport deal, supporting safer pedestrian options, gender-inclusive transit, and the acquisition of buses for the emerging BRT network.
“The programme is earmarked for termination, and notice of termination has already been received,” the Treasury said last week in the Sector Budget Proposal Report for FY 2026/27.
MCC threshold programmes are designed to help partner countries demonstrate commitment to democratic governance, economic freedom, and investments in their people through targeted policy reforms and capacity-building initiatives.
In Kenya’s case, the programme aimed to strengthen institutions, improve long-term urban planning, and promote integrated, accessible, and safer transportation.
“The Government of Kenya is committed to the activities and reforms that make up our Threshold Program, which we jointly designed with MCC,” said Njuguna Ndung’u, the Treasury Cabinet Secretary at the time of signing.
“This planned investment will strengthen our transport and land sectors and generate benefits for the people of Nairobi and all Kenyans.”
President Trump returned to office on January 20, 2025 after defeating Democratic presidential candidate Kamala Harris.
His administration began reversing deals signed by the previous Democratic administration, including dismantling the United States Agency for International Development (USAID) and reviewing foreign aid programmes worldwide.
Mr Trump announced that his administration would eliminate more than 90 percent of USAid’s foreign aid contracts and $60 billion (Sh7.75 trillion) in overall US assistance globally.
In Kenya, the termination of the MCC grant is part of a broader wave of cancellations affecting US government contracts and foreign aid agreements under the Trump administration.
The value of big-ticket contracts terminated by the US government in Kenya has crossed Sh108 billion.
The Nairobi BRT project, a critical component of Kenya’s efforts to modernise urban transport, is among the most severely affected.
Planned improvements included dedicated lanes for high-capacity buses, safer pedestrian pathways, and gender-inclusive transit facilities.
The programme also aimed to fund climate-friendly buses for the growing network, integrating with the city’s transport infrastructure to reduce congestion, cut emissions, and improve urban mobility.
“Today’s signing ceremony [in 2023] marked an exciting milestone in the growing partnership between Kenya and the United States,” President Ruto said at the time.
The BRT programme has largely stalled due to funding shortfalls, which have delayed payments to contractors. Nairobi’s BRT network is set to feature five key lines.
Line 1 (Ndovu) will run from Limuru through Kangemi and the CBD to Imara Daima, connecting to Athi River and Kitengela, with dedicated infrastructure along the Nairobi Expressway.
Line 2 (Simba), which to be partly funded by the MCC grant, will serve the Rongai–Bomas/Lang’ata–CBD–Ruiru–Thika–Kenol corridor, featuring 10 intermediate stations along Thika Road and park-and-ride facilities.
Line 3 (Chui) stretches from Tala and Njiru through Dandora and the CBD to Showground and Ngong, backed by €320 million (Sh43.4 billion) from international partners, with plans for 120 electric buses and 14 stations.
Line 4 (Kifaru) connects Mama Lucy Hospital, Donholm, and the CBD to T Mall, Bomas, Karen, and Kikuyu, and is supported by the African Development Bank under Nairobi’s transport master plan.
Line 5 (Nyati) will follow Ridgeways through Balozi to Imara Daima along the Outer Ring Road, costing an estimated Sh7.3 billion financed by the Korean Exim Bank.
Collectively, the lines will feature dedicated lanes, stations, footbridges, park-and-ride facilities, EV-charging depots, CCTV, and enforcement systems, aimed at enhancing commuter safety, reducing congestion, and promoting sustainable transport across Nairobi.
The Transport ministry says it has completed construction of the Business Management Centre at Kasarani Depot, a key element of BRT Line 2 operations, which was intended to run from Rongai to Bomas, the CBD, Ruiru, Thika, and Kenol.
