More than £4m is to be spent on projects to improve Ashford town centre including developing an arts centre and revamping a railway station forecourt.
The council has been allocated £4.2m from the government's Growth Area Funding scheme.
Some of the funds will be spent on the Arts at St Mary's project, where a Victorian church is being turned into an arts venue, the council said.
Council leader Paul Bartlett said it was a "huge boost" to the town's plans.
He said: "At a time when cuts in public spending are reaching unprecedented levels, the new coalition government has shown its confidence in Ashford's growth programme.
"This further investment will fund a range of improvement projects in the town to make Ashford a better place to live and work for our residents."
He said the area was also benefiting from other successful government funding bids which had led to more than £54m being invested in Ashford in 2010/11.