The study was to establish the contribution of public transport services to the development of Kigali city. Glossily, the transport sector plays an important role in the economic development of a country, the transport network drives other sectors such as agriculture, trade or business sector and all other service sector. Though research transport services has been found to create employment, income, revenue, increase tax and infrastructure development as well as improve wellbeing of the people. The problem was that transport services does not offer the expected services and benefits in Kigali city and its economic contribution is not recognized by the local community. The specific objectives included to find out transport services contribution to economic development, to find out the factors that limit the contribution and the solution to the problems. Pearson correlations test indicates a positive and very high relationship between variables of this study. The researcher concluded that transport is an important element of economic development and several factors influence transport which also affects economic development. It was recommended that RFTC should bring modern busses for better transport and satisfaction of passengers. RFTC should also train drivers and conductors to improve professionalism service to passengers.