Kenya Govt Signs 8.7 Billion Deal with the US for BRT and Electric Vehicles

The Kenyan government has signed a Ksh.8.7 billion ($60 million) agreement with the United States Millennium Change Corporation (MCC). The MCC deal is labelled the Kenya Urban Mobility and Growth Threshold Program.

The program will channel the funds into four projects in Kenya. The Integrated Transport Planning Project, the First and Last Mile Connections Project, the Detailed Land Use Project. Lastly, it will finance the Bus Rapid Transit (BRT) Project.

For the BRT, the deal aims to finance the acquisition of electric buses for Nairobi’s Bus Rapid Transit system. Recently, it was announced that the Bus Rapid Transit (BRT) network in Nairobi, will only be operated by green (electric, hybrid, and biodiesel) vehicles.

In addition, the announcement comes after the African Climate Summit in Nairobi. This reiterates the government’s push for a cleaner and more efficient Nairobi.

The Millennium Challenge Corporation is an independent U.S. government agency. The agency was founded in 2004 to spur economic growth in the world. MCC does this by providing time-limited grants and assistance to countries.
MCC Deal Timely

In general, electric mobility in Africa is growing, but the growth rate is met by several challenges. One of the biggest challenges is the initial cost of buying Electric Vehicles (EVs).

Kenya is among those that have committed to transition fully to zero-emission motor vehicles by 2040. Later in the year, the Kenyan government is set to publish an e-mobility policy. The policy is expected to set the path for the transition through the development of the required infrastructure.

This MCC deal is perfectly timed with the recent launch of the Roam Move shuttle bus to serve the matatu industry.

Roam already has Roam Rapid designed for the BRT line. Notably, the BRT project has currently stalled. Kenyans will hope the new funds will revive the project.

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