This research explores the optimization of supply chain networks for urban construction projects in Kigali, Rwanda, focusing on inefficiencies such as fragmented supplier networks, transportation bottlenecks, and limited technological integration. A mixed-methods approach was employed, incorporating semi-structured interviews with stakeholders and quantitative analysis of supply chain performance data. Key findings revealed a significant increase in locally sourced materials from 65% in 2010 to 75% in 2014 (p < 0.05), alongside a reduction in average lead time for local materials from 10 days in 2010 to 6 days in 2014 (t = 4.21, p < 0.001). Regression analysis highlighted procurement costs as the largest supply chain expense at 40% (R² = 0.78, p < 0.01), while transportation issues and supplier delays were identified as critical inefficiencies. Recommendations include enhancing local supplier capacity, adopting advanced supply chain technologies, diversifying transportation methods, and strengthening stakeholder collaboration. Implementing these strategies could improve cost efficiency, reduce project delays, and support Kigali’s sustainable urban development goals.