The City of Kigali has outlined key development projects for the upcoming budget year, starting in July 2025. These include the upgrading of the Nyabugogo Bus Terminal, urban planning improvements in various parts of the city, and initiatives aimed at enhancing the welfare of residents in informal settlements.
The City plans to spend over Frw 251 billion in the 2025/2026 fiscal year, with this figure projected to increase to Frw 263 billion the following year, and Frw 306 billion by 2027/2028.
Upgrading settlements in Mpazi, Nyabisindu, Nyagatovu, and Gatenga
The City of Kigali continues its programme to improve residential areas across the city. Through the RUDPII project, upgrades will be made in Mpazi (Nyarugenge), Nyabisindu and Nyagatovu (Gasabo), and Gatenga (Kicukiro).
The entire project is estimated to cost over Frw 53.9 billion, with Frw 26.9 billion allocated in the 2025/2026 budget. This initiative is jointly implemented with the Ministry of Infrastructure and is expected to significantly improve living conditions in these areas.
Revamping Nyabugogo Bus Terminal
One of the most highly anticipated projects is the revamp of the Nyabugogo Bus Terminal, which includes the creation of a dedicated bus lane.
The total project cost is projected at Frw 288.6 billion, with completion expected by June 2030. Approximately Frw 13 billion is allocated for the 2025/2026 fiscal year.
Though implementation was supposed to begin earlier, the project was delayed due to a funding shortfall, specifically Frw 1.2 billion, or 18% in taxes, which the government has yet to disburse.
Completing road construction under the KIP project
The Kigali Infrastructure Project (KIP), launched in 2020, aims to build 215 kilometres of roads.
Completion is scheduled for 2030/2031, with a total projected cost of $404 million. So far, Frw 299 billion has been spent, and Frw 15 billion is allocated for the 2025/2026 budget.
Challenges facing this project include a $150 million loan and a Frw 88 billion budget gap that the City is still working to cover.
Upgrading settlements in Rwezamenyo and Kagugu
Another significant housing project focuses on upgrading Rwezamenyo (Nyarugenge) and Kagugu (Gasabo) settlements.
The total budget for this project is Frw 92 billion, with Frw 20 billion allocated for the 2025/2026 fiscal year. However, implementation still awaits a Frw 2 billion tax contribution (18% share) from the Government of Rwanda and a Frw 9 billion resettlement compensation fund.
Community-cooperative road construction
The City is also partnering with residents to build community access roads. Under this scheme, citizens contribute 30% of the cost, while the government covers the remaining 70%.
So far, Frw 1.1 billion has been raised for the 2025/2026 budget. However, the project is challenged by the City's limited capacity to supplement the numerous requests for road construction.
Other planned developments
Improvement of informal settlements in Mpazi and Nyabisindu, with Frw 1.47 billion allocated.
There is also the installation of automated streetlights, with the project expected to cost over Frw 5 billion. The budget for next year includes ¥502 million (over Frw 4.9 billion) allocated for this project.
IGIHE
