A new wave of urban transformation is underway in Nairobi as the second phase of the Sh578 million Kenya Informal Settlements Improvement Project II (KISIP II) takes off, targeting some of the capital’s most underserved areas.

The project, which is financed by the World Bank, is focused on improving basic infrastructure and public services across several informal settlements including Kahawa Soweto, Kayole Soweto, Embakasi Village, Kambi Moto, Spring Valley Kayole, and parts of Mathare.

At least 400,000 people living in informal settlements across Nairobi are expected to benefit from the initiative, which is being implemented in phases across 81 settlements in 23 counties.

In Nairobi, the current rollout covers four major settlements within Embakasi East, Mathare, and Roysambu sub-counties.

The upgrades are being implemented under the Urban Fabric Initiative (UFI), a community-driven programme led by the Nairobi City County’s Housing and Urban Renewal Department.

The department, under Chief Officer Lydia Mathia, is overseeing the development of facilities that respond to local needs—ranging from sanitation blocks and clean water points to digital access hubs and youth-focused spaces.

“The Kenya Informal Settlements Improvement Project plays a pivotal role in the Urban Fabric Initiative by systematically addressing foundational challenges in these communities,” said Lydia Mathia. “Through improved infrastructure, secure land tenure, and community-led development, we are turning marginalized areas into vibrant, dignified neighborhoods.”

Residents of Kayole Soweto have already started seeing change with the introduction of a social hall, a public water purifier, computer labs, study areas, and modern washroom facilities.

These additions are designed to tackle the pressing challenges of water shortages, digital exclusion, and lack of safe communal spaces.

In support of the initiative, Governor Sakaja Johnson emphasised the long-term impact of these developments, particularly for women and youth.

"These projects are more than structures. They are incubators for informal businesses and platforms for economic empowerment. By freeing up time for women and creating space for youth mentorship and digital access, we’re building futures right where people live,” Sakaja said.

The UFI is being implemented in collaboration with various partners, including the national government, European Union, Agence Française de Développement (AFD), Kounkuey Design Initiative, and Slum Dwellers International.

The Housing and Urban Renewal Department has taken a lead role in aligning Nairobi’s broader urban development strategy with KISIP II’s goals, ensuring that the momentum from these efforts is maintained long-term.

Elsewhere in Nairobi including Mathare, Embakasi Village, Spring Valley Kayole, and Kambi Moto—similar works such as street lighting, drainage systems, and road rehabilitation are underway, all designed to uplift living standards in low-income neighbourhoods.

KISIP II is structured in two phases. The first phase covers 25 settlements across five counties, while the second phase targets 56 settlements spread across 20 counties.

Nairobi’s informal areas are among the priority locations due to their high population density and urgent need for essential services.