Kenya - Nairobi Metropolitan Services Improvement Project

 PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: AB6933 Nairobi Metropolitan Services Improvement Project Project Name Region Africa Sector Solid waste management (20%), general water, sanitation and flood protection (20%); general transportation sector (20%); sub- national government administration (40%) Project ID P107314 Borrower Republic of Kenya Office of the Deputy Prime Minister and Ministry of Finance Implementing Agency Ministry of Nairobi Metropolitan Development Environment Category [X] A [ ] B [ ] C [ ] FI [ ] TBD (to be determined) Date PID Prepared December 28, 2011 Date of Appraisal February 2012 Authorization Date of Board Approval May 3, 2012 A. Country and Sector Background 1. The urban transition is well underway in Kenya and urbanization is projected to continue at a rapid pace. In 2011 about 30 percent of the Kenyan population was residing in urban areas and the total urban population was estimated to be about 15.2 million people.1 Kenya’s five largest cities (Nairobi, Mombasa, Kisumu, Nakuru, and Eldoret) account for approximately 34 percent of the urban population. It is forecast that in 2030 the population of Kenya will have reached about 61 million people, of which 30 million will reside in cities (see figure 1).2 The urban transition in Kenya will play an important role in determining the country’s growth prospects and social stability, which remain fragile after the 2008 post-election violence. 2. The government has requested support from the Bank to help with its urban transformation. The Government of Kenya has asked for support for three Bank-financed projects, each addressing a different element of urban development. The first is the Kenya Municipal Program (KMP), approved in May 2010 and effective in June 2010. This program focuses on strengthening the essential institutions of urban management—budgeting, financial management, participatory planning, project management, operations and maintenance, and good governance—in 15 of Kenya’s largest cities, while also financing investments in city-wide infrastructure. The Kenya Informal Settlement Improvement Project (KISIP), the second of the programs, was approved in March 2011 and became effective in June 2011. It is working in the same 15 municipalities as the KMP, and financing strengthening of tenure security, participatory planning, and basic human settlement infrastructure. The KMP and KISIP will be co-funded with the Agence Française de Développement and the Swedish International Development Cooperation Agency. The third is the Nairobi Metropolitan Services Improvement Project 1 Kenya National Bureau of Statistics. 2010. “2009 Population and Housing Census Results.