Nairobi County Governor Johnson Sakaja has secured an additional KSh 80 billion in funding for Nairobi following the signing of a landmark cooperation agreement with the National Government.
The deal, sealed alongside Prime Cabinet Secretary Musalia Mudavadi who was representing the national government, marks one of the largest capital-specific financing boosts since the advent of devolution in 2013.
The framework is expected to unlock billions more through a structured intergovernmental partnership targeting urban renewal.
The agreement outlines joint implementation of priority projects including infrastructure upgrades, improved waste management, expanded urban mobility, and strengthened public services.
No takeover, leaders insist
The pact was signed under Section 6 of the Urban Areas and Cities Act, which allows cooperation between the National and County Governments in managing urban areas.
President William Ruto dismissed claims that the agreement signals a takeover of county functions.
“What we are formalizing today is not a transfer of functions. Let me repeat, there is no transfer of functions taking place. I have no interest in running the city; my hands are already full. The Governor and his team must continue to run the city. However, as President, I have an obligation to support and assist the capital city,” Ruto said.
Governor Sakaja echoed the President’s remarks, distancing the deal from past administrative arrangements.
“This is not an NMS takeover. That was a misadventure that left behind Sh16 billion in debt. This is not a transfer of function. This is cooperation that recognizes Nairobi as the nation’s capital,” Sakaja stated.
He argued that Nairobi’s current financing model is inadequate to meet its growing urban demands, describing the agreement as a lawful and fiscally responsible solution to structural funding gaps.
What the deal means for Nairobi
The partnership is anchored in Article 189 of the Constitution, which mandates cooperation between the two levels of government while preserving devolved authority.
The partnership will focus on modernising solid waste management systems, rehabilitating and expanding road networks, developing non-motorised transport infrastructure, improving street lighting and public safety, upgrading markets to support small businesses, investing in housing-related infrastructure, and expanding water and sanitation services across the city.
Leaders noted that the agreement comes 13 years after the start of devolution, terming it “long overdue” but necessary to unlock stalled investments and accelerate development in the capital.
Oversight mechanisms in place
To ensure transparency and accountability, all projects will be costed and processed through lawful national and county budget frameworks in line with public finance management laws.
The deal also establishes a Joint Steering Committee and an Implementation Committee to oversee coordination, execution and performance tracking.
In the event Nairobi’s strategic position as Kenya’s diplomatic, commercial and administrative hub was cited as justification for the enhanced financing structure, with leaders noting that the capital’s efficiency directly impacts investor confidence, tourism, and overall national productivity.
