Nairobi To Receive Sh80 Billion In Two-Year National Government Partnership

Prime Cabinet Secretary Musalia Mudavadi has defended a Sh80 billion cooperation agreement between the national government and Nairobi City County, appearing before the Senate Devolution Committee to address concerns regarding the legal standing of the deal. The agreement, which spans 24 months, seeks to streamline the planning and financing of major infrastructure projects in the capital.

Addressing the committee on Monday, Musalia Mudavadi emphasized that the framework is strictly a coordination effort and does not constitute a transfer of functions. He drew a sharp distinction between this arrangement and the now-defunct Nairobi Metropolitan Services, which operated under a formal transfer of powers.

The Prime Cabinet Secretary noted that the Intergovernmental Relations Act provides the legal anchor for the partnership. He stated that the cooperation is designed to address the unique status of Nairobi, which contributes approximately 27.5 percent of the national gross value added and serves as a global diplomatic hub.

Under the 24-month mandate, the Sh80 billion commitment will be directed toward several key urban sectors. Planned interventions include the installation of 50,000 street lights, upgrades to roads and bridges, and the expansion of markets. The funding is also expected to support water and sanitation improvements and flood resilience projects across the metropolitan region.

Governance of the initiative involves a two-tier structure. A joint steering committee, chaired by Musalia Mudavadi and deputized by Governor Johnson Sakaja, will provide high-level oversight. Daily execution of the projects remains the responsibility of an implementation committee led by the Governor.

The Senate committee, chaired by Mohamed Abbas, raised questions regarding the role of the County Assembly and the Senate in auditing these funds. Senators expressed concern that the agreement could potentially bypass legislative oversight or erode the autonomy of the county government.

In response, Musalia Mudavadi maintained that the county government remains the primary implementing entity. He argued that the scale of Nairobi's challenges, including a population nearing seven million, requires support beyond the standard equitable share of revenue.

The deal follows the formal signing of the pact by President Ruto and Governor Sakaja in February. The administration views the partnership as a necessary step to maintain Nairobi's competitiveness against other regional capitals.

Beyond physical infrastructure, the cooperation framework covers waste management and environmental restoration, specifically targeting the Nairobi River corridor. Officials indicated that these improvements are also part of the city's preparations for hosting the AFCON 2027 tournament.

The Prime Cabinet Secretary told the committee that the success of the program depends on the effective implementation of these commitments. He urged accountability to ensure the Sh80 billion investment translates into measurable benefits for the locals.