CDP 2 targeted assistance to community-based, demand driven initiatives, as a strategy of supporting integrated and sustainable development, aimed at assisting Kenya achieve economic growth and recovery; employment creation; and national poverty reduction.  It also strove to build sustainable capacity of local communities to take charge of their own development initiatives, so as to increase their participation in development activities; improve security of their livelihoods; create employment opportunities; and promote gender balance.

The CDP 2 was offering funding at two ceiling levels based on the scope of the projects, as follows:

1. Small projects usually targeting a single facility or infrastructure such as school improvement; dispensary or health center; small and medium sized water projects; bridges etc. Such projects fall within a funding ceiling of Ksh.5.0 million.  Most projects to be considered for CDP funding will be those falling under this category.
2. Integrated projects that involve more than one inter-related development sector, with sub-projects that can be implemented as one project.  For example, a Health Center or dispensary that require improvement/expansion of buildings and may also require improvement of the road linking to it, inclusive of a bridge, so as to allow access to it by users.  Such integrated projects fall within a funding ceiling of Ksh.21 million.
3. Cluster projects that involve more than one community setting and therefore usually serve large geographical areas (e.g. piped water supply scheme serving a number of villages or location).  Such cluster projects fall within a funding ceiling of Ksh.21 million.