Sakaja on the Hot Seat Over Sh2.7bn Revenue System and Sh850m Server Room

Nairobi Governor Johnson Sakaja found himself on the defensive before the Senate County Public Accounts Committee. Senators questioned a Sh2.7 billion revenue collection arrangement and the underutilisation of a Sh850 million data centre.

The Auditor General flagged the Nairobi Pay system in her latest report. Despite heavy investment in ICT infrastructure, the county entered an agreement allowing a vendor to earn 4.5 per cent of all revenue collected.

The arrangement signed in December 2024 could see the vendor earn approximately Sh540 million annually and up to Sh2.7 billion over five years.

Sakaja defended the platform. He said it had transformed revenue collection and reduced leakages that plagued previous systems.

The governor explained that Nairobi Pay was procured through a government-to-government arrangement with the Ministry of ICT. The servers are hosted at Konza Technopolis.

He maintained that the system enables real-time tracking of revenue from all streams. Revenue has grown from Sh8 billion when he took office to Sh13.8 billion in the financial year ending June 2025.

Senators demanded more clarity. They asked whether the platform has been capitalised as a county asset and who owns it. Nandi Senator Samson Cherargei called for a forensic audit to determine value for money.

Homa Bay Senator Moses Kajwang questioned ownership. He sought to know if Nairobi Pay belongs to the county or the Ministry of ICT.

Nairobi Senator Edwin Sifuna accused the administration of creating confusion. He noted that county officials had previously claimed outright ownership.

Taita Taveta Senator Johnes Mwaruma, who chaired the sitting, directed the county to table procurement documents. The committee gave Nairobi County 14 days to submit additional information.

The Sh850 million Tier One server room remains underutilised even as the county incurs costs for the revenue platform.

Sakaja said the data centre lacks capacity for revenue collection servers. He also revealed that other counties including Nyandarua have adopted the system.

The case has reignited debate over public procurement and technology investments in county governments.