The Cabinet has approved key amendments in the Urban Areas and Cities Act, 2011 and amendments to the Urban Areas and Cities (Amendment) Bill, 2015.
The proposed amendments to the two Acts will clarify the role and contribution of urban areas and cities in the development of the national and county economies.
President Uhuru Kenyatta chaired the fourth Cabinet meeting on Friday at State House, Nairobi.
The amendments will help to define the key services that an urban area or city will offer to the economy as a whole.
The Urban Areas and Cities Amendment Bill 2015, encourages counties to align their urban areas and cities to specific functions and resource endowment for sustainable development.
The legislation also proposes enforcement of the appointment of Cities and Municipality Boards or Committees, with clear budgets and urban (spatial) plans.
The national government commits to strengthen the Directorate of Urban Development currently in the Ministry of Land, Housing and Urban Development to guide the urbanisation process in Kenya.
An Urban Development Fund (UDF) will be created to cater for high capital expenditure projects, some of which are inter/intra counties and are beyond the scope and budgetary allocation of counties such as storm water, solid waste landfills, urbanisation studies and related core urban programs.