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                                       Republic of Kenya

                       National Urban Transport Improvement Project

                                 SUMMARY OF DISCUSSION

                                 Meeting of Executive Directors

                                         August 2, 2012


The Executive Directors approved the credit to the Republic of Kenya for the National Urban
Transport Improvement Project (NUTRIP) in the amount of SDR193.5 million (US$300 million
equivalent) on the payment terms and conditions set out in the President’s Memorandum.

Executive Directors expressed support for the objectives of the NUTRIP. They noted that
improving transport services and infrastructure are critical to improving access to economic
opportunities, including opportunities for women, enhancing social inclusion, and promoting
economic growth in Kenya. In this context, they encouraged the Government to continue to
implement needed policy and institutional reforms in urban transport, including establishing the
Nairobi Metropolitan Transport Authority, and to expand oversight capacity and improve
regulation.

Directors welcomed the project’s support for developing mass transit systems, including
commuter rail and bus rapid transit, which will provide affordable and efficient transport services
particularly for low-income populations. Directors noted that these reforms are necessary to
sustain private sector involvement in the transport sector and in this regard called for greater
collaboration with IFC. Directors also noted potential implementation risks and urged the
government to ensure that appropriate mitigation measures are implemented under the project.