National Government to Inject Ksh.80 Billion in New Nairobi Revamp Deal

By : Mweru Mbugua 

The National Government has signed a cooperation agreement with Nairobi City County that will see an additional Ksh.80 billion injected into the capital over the next two years to improve service delivery and strengthen county operations

The deal, signed on Tuesday by President William Ruto and Nairobi Governor Johnson Sakaja at State House, marks the second major intervention by the central government in the affairs of City Hall since the introduction of devolution in 2013

Officials from both levels of government insisted the agreement is not a transfer of functions but a collaborative framework anchored in Articles 187 and 189 of the Constitution, which provide for cooperation between national and county governments

“This is not a transfer of functions. I have no interest in running Nairobi. Let Sakaja and his team do their work,” President Ruto said during the signing ceremony

Under the agreement, the Ksh.80 billion allocation—four times more than what the county received in the current financial year—will finance infrastructure and essential services across the capital

The breakdown includes:

• Ksh.3.7 billion for modernization of street lighting

• Ksh.1.5 billion for purchase of transformers to enhance last-mile electricity connectivity

• Ksh.5 billion for water treatment and supply projects

• Ksh.9 billion for construction of a 27-kilometre sewer line in the northern corridor

• Ksh.4 billion for waste management initiatives

The agreement also provides for enhanced security coordination, including the establishment of a Nairobi Metropolitan Police Unit to work alongside county enforcement officers

A steering committee chaired by Prime Cabinet Secretary Musalia Mudavadi will oversee the implementation of the agreement, with Governor Sakaja serving as vice chair. The committee will meet quarterly and includes Interior Cabinet Secretary Kipchumba Murkomen, Treasury Cabinet Secretary John Mbadi, as well as Cabinet Secretaries responsible for Lands, Environment, Energy, and Water, alongside two attorneys

An implementation committee chaired by Governor Sakaja will handle day-to-day execution of the projects

President Ruto criticized the current fiscal framework for devolved units, arguing that it does not adequately account for Nairobi’s unique role as the country’s capital and economic hub

 Also read : President Ruto Unveils Ksh.5 Billion Plan for Modern Gikomba Market

“The fiscal and operational framework of the county’s financing was not designed for a capital city of this scale and responsibility,” he said, noting that Nairobi carries national, regional and global obligations

Governor Sakaja said the county had not fully leveraged its status as a capital city in the 13 years since devolution began

Despite being the country’s wealthiest county and collecting more than Ksh.12.1 billion in own-source revenue in the 2024/25 financial year, Nairobi has faced persistent challenges including financial mismanagement, infrastructure strain and service delivery gaps

The agreement will take effect 14 days after signing and will run for an initial 24 months, subject to renewal. It will now be submitted to the Nairobi County Assembly to facilitate public participation within the next two weeks

Either party may terminate the agreement through mutual consent or by issuing a six-month notice

Both governments maintained that the arrangement is intended to enhance efficiency and service delivery in the capital, dismissing suggestions of a constitutional takeover