The lower chamber of Parliament has approved the draft law financing urban mobility, aimed at improving urban transport and in particular upgrading Nyabugogo Bus Terminal.

Godfrey Kabera, the Minister of State for Finance, presented the rationale for the bills during a parliamentary session on Wednesday, June 24, where they were approved without undergoing committee scrutiny.

During the session, Kabera requested immediate approval of the bills, a move endorsed by Members of Parliament, in line with the usual practice for financing agreements and grant-related legislation.

ALSO READ: Cabinet approves $100m for Nyabugogo upgrade, Kigali mobility overhaul

He presented a draft law approving the ratification of a loan agreement between Rwanda and the International Development Association (IDA), including a loan of $3.7 million (about Rwf5.4 billion) to be repaid within 12 years with a six-year grace period at zero per cent interest, and a loan of $26.2 million (about Rwf38.48 billion), to be repaid within 50 years with a 10-year grace period at zero per cent interest.

The funds are intended for the Rwanda Urban Mobility Improvement Project, signed in Kigali on April 8, 2026.

He also presented another draft law approving a separate IDA loan of JPY 10.855 billion (about Rwf98.5 billion), to be repaid within 34 years with a five-year grace period at 0.5 per cent interest, also for the Rwanda Urban Mobility Improvement Project signed on the same date.

ALSO READ: 50 more electric buses to be deployed on Kigali roads

Kabera said the loans are aimed at improving transport services, expanding access to safe mobility, and creating job opportunities in Kigali and other urban areas.

"The project will improve urban transport, expand access to safe mobility services and create jobs along transport corridors and within urban centres,” he said.

He explained that the project focuses on areas including the upgrading of Nyabugogo Bus Terminal and surrounding infrastructure, in line with international transport standards and inclusion principles.

It will also support the development of public transport systems, including pedestrian walkways, cycling lanes, and dedicated bus corridors to improve movement between homes and workplaces.

ALSO READ: What is the outlook for urban mobility in Kigali?

On electric mobility, Kabera said the project will support the deployment of electric buses in Kigali, including the development of charging infrastructure, regulations for e-mobility, bus routing, and a master plan.

"There is also work on ensuring charging infrastructure, defining bus stops, and putting in place a clear master plan for e-mobility,” he said, adding that this aligns with the country’s zero-emission policy.

The programme also includes capacity building for staff in key institutions, including the Ministry of Infrastructure, the City of Kigali, and the Rwanda Utilities Regulatory Authority (RURA), as well as emergency response mechanisms for road accidents.

Implementation concerns

During the plenary session, MPs raised concerns over implementation timelines, geographic scope, inclusivity, and economic benefits.

MP Christine Bakundufite asked how the government will ensure immediate implementation to avoid delays, and how users of Nyabugogo Bus Terminal will be supported during reconstruction.

MP Speciose Ayinkamiye questioned why the urban mobility programme appeared to focus mainly on Kigali, despite being presented as national in scope, and called for faster implementation once approved.

MP Erneste Nsabandi asked how many Rwandans would benefit economically from the investments and questioned the scale of opportunities created.

MP Jennifer Wibabara raised concerns over women’s participation in infrastructure projects, noting that they are often limited to low-skilled roles such as guiding people or holding flags.

In response, Kabera said implementation will begin in Kigali but will later be expanded to other cities.

He said lessons from Kigali will guide national rollout, including the establishment of charging infrastructure in other urban centres.

He also said the programme will focus on youth skills development, including training for drivers, technicians, and infrastructure specialists in e-mobility.

Kabera added that implementation will be done in partnership with private operators, noting that Ecofleet manages public transport in Kigali while also working with private bus operators.