The UMDF unlocks $100m investment for Kigali transport improvement project

05/05/2025
Janet Onyango

The UMDF’s project preparation program has unlocked $100 million of funding for the implementation of the Kigali Urban Transport Improvement (KUTI) project. KUTI aims to upgrade three critical junctions, Chez Lando, Gishushu, and Kicukiro/Sonatubes in Kigali in order to decongest the city’s main roads. Further, the upgrades will facilitate national and regional transport and trade through the city, reduce greenhouse gas emissions, and support Kigali's transition to a low-carbon urban transport system. 

Kigali’s location at the intersection of East Africa’s Northern and Eastern corridors makes it a regional economic hub and a popular destination and transit point for road freight. In addition, the city's growing population, currently at 1.7 million and expected to reach 3.8 million by 2050 owing to rapid urbanization, is putting pressure on the city’s transport system. The result is traffic jams and overcrowding at peak times, long wait times at bus stops due to an insufficient fleet, and commuters’ over-reliance on private cars. Motorcycles, cars, buses, and bicycles all compete for the same space on the roads and roads are often flooded during rainy periods, exacerbating congestion. 

Following feasibility studies and other studies carried out and funded by the UMDF to the tune of about $1.4 million, as well as UMDF’s work to prepare the project for investment funding, the African Development Bank Group (AfDB) Board approved a loan of $100 million in December 2024.

The vision 

KUTI aims to upgrade three critical junctions, Chez Lando, Gishushu, and Kicukiro/Sonatubes in Kigali in order to decongest the city’s main roads. Further, the upgrades will facilitate national and regional transport and trade through the city, reduce greenhouse gas emissions, and support Kigali's transition to a low-carbon urban transport system. 

In addition, KUTI will provide complementary investments in social infrastructure, such as the modernisation of bus stops and safe, well-lit public transport stations, that provide shelter from the rain and that are convenient for nursing mothers. Sidewalks and pedestrian crossings will be installed, making them safe and suitable for all persons, including persons with disabilities. This initiative is expected to create approximately 400 jobs during the construction phase, with 30% of these opportunities designated for women. 

Speaking during the launch of KUTI in Kigali on 24 March 2025, Aïssa Touré Sarr, Country Manager of the African Development Bank Group in Rwanda, described the planned interventions: “The project will focus on improving three of the seven critical intersections identified as bottlenecks in order to have a more efficient, sustainable and user-friendly urban transport infrastructure.” She added: “Ultimately, the investments are expected to alleviate current and future urban mobility challenges in Kigali and pave the way for a just transition to a more sustainable and efficient urban transport system, thereby moving towards a low-carbon sector.”  

Further development plans 

Also speaking during the launch of KUTI, the African Development Bank Group's Urban Development Division Manager, Stefan Atchia, said KUTI is part of a larger program aimed at transforming Kigali's urban mobility ecosystem. He said key initiatives include:

- The Rwanda Urban Mobility Project, which focuses on the provision of bus lanes and fleet renewal.

- The Kigali Infrastructure Project for the upgrade of 215 km of urban roads and improving informal settlements; and

- Urban Mobility Improvement in Kigali which focuses on traffic management systems and public transport improvement

- A cable car network.

Atchia said, "KUTI project is an enabler aiming to improve transportation infrastructure, benefiting residents and businesses. These investments demonstrate Rwanda's commitment to sustainable development and a prosperous future for Kigali. Access to basic services, shelter, and transportation is crucial for continued development." 

KUTI embodies the UMDF’s values, namely safe, low-carbon transport, urban and road development that boosts the economic growth of African cities.

Photo credits: Rwanda Transport Development Agency (RTDA)