In the next 20 years local authorities in Kenya
will have to provide urban infrastructure (water,
sewer, roads, street lighting) for an estimated
6 million new urban residents. This paper
discusses sources of capital finance available to
local authorities for these projects. The
financing and construction of housing infrastructure
is a necessary precondition for the expansion of
site and service and all other shelter pr oqz amme s.
The author offers solutions to one of the most
significant "housing" problems of Kenya's local
authori t Les . the acquisition of the initial
finance for infrastructure construction.