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

Cabinet has approved a draft law ratifying a financing agreement with the International Development Association (IDA), paving the way for a $100 million contribution toward the Rwanda Urban Mobility Improvement Project (RUMI), aimed at transforming Kigali’s transport system. The approval, granted on June 8, clears a key procedural step for the IDA financing, part of a broader $239.8 million project also supported by the European Investment Bank (EIB), the European Union (EU), and the Government of Rwanda. According to the Ministry of Infrastructure, RUMI is designed to ease congestion, improve public transport services, and expand access to jobs and essential services in Kigali, where transport demand continues to outpace infrastructure capacity. ALSO READ: Property owners to relocate as Nyabugogo bus station upgrade nears Addressing Kigali’s mobility pressures Kigali’s transport network is under increasing strain, with key hubs such as Nyabugogo operating beyond capacity. Challenges include persistent traffic congestion, limited pedestrian and cycling infrastructure, road safety concerns, and rising air pollution and emissions. Current estimates show that only about one-third of jobs in Kigali can be reached within 60 minutes using public transport, underscoring gaps in mobility and access to economic opportunities. The project aligns with national development frameworks, including Vision 2050, the Second National Strategy for Transformation (NST2), the National Transport Policy, and the Kigali City Master Plan 2050, all prioritising safe, inclusive, and climate-resilient urban mobility. Nyabugogo hub at the centre of reforms A major component of RUMI is the upgrade of the Nyabugogo Multimodal Transit Hub, which will be transformed into a modern, climate-resilient facility. The redesigned hub will feature improved passenger amenities, commercial spaces, and integrated transport services to support urban, intercity, and international travel. It is expected to ease congestion, improve passenger flow, and enable smoother transfers between different transport modes. ALSO READ: Kigali rolls out extended bus lanes on four routes Dedicated bus lanes and improved services The project will also finance the construction of Dedicated Bus Lanes (DBLs) along major Kigali corridors, supported by upgraded intersections, sidewalks, cycling lanes, and improved traffic management systems. These lanes are expected to allow buses to bypass congestion, improving reliability and reducing travel times. RUMI also plans to introduce second-generation bus service contracts based on timetables and distance-based fares to improve efficiency and service quality. Pedestrian and cycling infrastructure will be expanded in selected neighbourhoods linked to transport corridors, improving last-mile connectivity. Push for electric and low-carbon transport The project will support Rwanda’s transition to cleaner mobility through investments in electric transport systems. This includes regulatory reforms, procurement of electric buses, and development of charging infrastructure and depots, aimed at reducing greenhouse gas emissions and air pollution while strengthening climate resilience in urban transport. ALSO READ: Govt mandates 30% electric vehicles in public procurement Building institutional capacity Beyond infrastructure, RUMI will strengthen the capacity of the City of Kigali, the Ministry of Infrastructure, and other transport institutions. It also plans to establish an urban mobility centre and specialised training programmes to improve transport planning and management. Economic and social impact Officials expect the project to deliver broad economic, social, and environmental benefits. It is projected to improve access to jobs, stimulate business activity around Nyabugogo, and create employment opportunities in transport services, construction, and related urban development activities. Socially, it is expected to enhance access to essential services such as education and healthcare, improve road safety—particularly for pedestrians and cyclists—and expand opportunities for women and vulnerable groups in the transport sector. Environmentally, it is expected to encourage public transport use, walking, and cycling, while supporting electric buses and infrastructure designed to reduce flood risks and climate-related vulnerabilities. Next steps Following Cabinet approval, the draft ratification law will be submitted to Parliament for consideration. Once approved and financing conditions are met, implementation of the project will officially begin. Preparatory work, including feasibility studies, design work, and safeguard assessments, has already been completed, paving the way for rollout.

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