The City of Kigali is set to spend Rwf251.7 billion allocated by the Ministry of Finance and Economic Planning for the 2025/2026 fiscal year, which begins on July 1, according to Mayor Samuel Dusengiyumva.
This marks nearly 12 per cent decrease from the Rwf263.6 billion it was allocated in the revised budget for 2024/25.
However, Dusengiyumva said the city budget is projected to grow to over Rwf263.8 billion in 2026/27 and Rwf306.4 billion in 2027/28.
He was presenting the proposed fiscal plan to the parliamentary standing Committee on State Budget and Patrimony, on May 9.
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This was a session in which the committee started budget hearings to know plans and spending priorities of public entities as well as the proposed allocations for the next fiscal year.
The budget was presented to Parliament on Thursday, May 8 by the Minister of Finance and Economic Planning, Yusuf Murangwa.
The aim of the hearings is to assess whether resource allocation was based on priorities in line with the government's national development agenda and provide relevant recommendations or inputs regarding adjustments that should be made to the draft budget law, which the Ministry of Finance and Economic Planning is set to table to parliament in June.
During the session, Dusengiyumva highlighted six key projects set to be financed in the upcoming fiscal year.
1. Informal settlement upgrading - RUDP II
Under the World Bank-funded Rwanda Urban Development Project II (RUDP II), Kigali plans to upgrade four informal settlements: Mpazi (Nyarugenge), Nyabisindu and Nyagatovu (Gasabo), and Gatenga (Kicukiro).
In the next year budget, Rwf26.9 billion was earmarked for its implementation.
The total project cost is Rwf53.9 billion and is scheduled for completion in December 2025. No major funding challenges have been reported by the city authorities.
2. Nyabugogo bus terminal revamp - RUMI project
Through the Rwanda Urban Mobility Improvement (RUMI) Project, Kigali plans to modernise the Nyabugogo bus terminal and create a dedicated bus lane.
It was allocated Rwf19.3 billion in 2025/26, which is projected to rise sharply in the coming years to over Rwf82 billion by 2027/28.
The total project costs exceed Rwf288.6 billion, as per information from the City of Kigali. It is backed by the World Bank and aims for completion in June 2030 and supports national development goals like Vision 2050.
3. Kigali Informal Settlement Upgrading Project (KISUP)
Targeting Rwezamenyo (Nyarugenge) and Kagugu (Gasabo), KISUP will upgrade informal settlements at a total cost of over Rwf92 billion. Completion is slated for July 2029.
For the 2025/26 fiscal year, the project was earmarked Rwf20.4 billion.
However, the city still needs Rwf9 billion for expropriation compensation.
4. Completion of Kigali Infrastructure Project (KIP)
With nearly Rwf300 billion already spent, KIP is nearing completion, according to Dusengiyumva. The full budget is $404 million (around Rwf575 billion based on current exchange rates), and it is funded through a co-financing model. It was allocated Rwf15 billion for 2025/26.
The project consists of constructing 215.5 kilometres of road network.
Dusengiyumva said that the City of Kigali is now focused on securing funds to repay the loan, which comprises $150 million and Rwf88 billion.
5. Neighbourhood road construction with residents
This community-driven initiative involves a cost-sharing model between residents and the City of Kigali.
For this project, more than Rwf1.1 billion is expected to be used. This project -- planned for the period 2023/2024 - 2025/2026 -- required an estimated Rwf4.3 billion.
So far, over Rwf1 billion has been spent through the City of Kigali budget. For 2025/2026, more than Rwf1.1 billion is earmarked for supporting this initiative.
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The city in collaboration with other relevant entities has developed implementation guidelines and aims to scale up construction in the coming year, despite budget constraints, according to Dusengiyumva.
"We think that in the next year, we will be able to fast-track construction so that we build quality roads," Dusengiyumva said.
"It is something good--we appreciate residents building roads in collaboration with the city leadership. We are committed to investing more efforts in it."
6. Improving living conditions in informal settlements
Focused on Mpazi (Nyarugenge) and Nyabisindu (Gasabo), this project is designed to enhance resilience and quality of life in vulnerable urban areas. It is scheduled for completion in 2025/26, with an allocation of Rwf1.4 billion in the same year.
These six projects reflect Kigali's strategic priorities in urban upgrading, mobility, and infrastructure, despite a tighter budget. City officials emphasise partnerships and resident collaboration as key to realising these goals.
