Sakaja Secures KSh 80 Billion Additional Funding in Deal Signed with President Ruto
Nairobi Governor Johnson Sakaja has secured an additional KSh 80 billion in funding through a landmark cooperation agreement signed with President William Ruto and the National Government on February 17, 2026, at State House.
The pact, signed by Prime Cabinet Secretary Musalia Mudavadi on behalf of the national government and Governor Sakaja for the county, establishes a structured framework for joint planning, financing, and execution of development programs under Section 6 of the Urban Areas and Cities Act. It introduces oversight through a Steering Committee and an Implementation Committee to ensure coordinated budgeting, monitoring, and adherence to public finance regulations, marking one of the most significant funding arrangements for Nairobi since devolution began in 2013.
President Ruto emphasized that the deal does not involve any transfer of devolved functions to the national level, stating, “What we are formalizing today is not a transfer of functions... For the avoidance of doubt, I have no interest in running the city of Nairobi; 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.” Governor Sakaja reinforced this position, describing the agreement as a collaborative partnership rather than a takeover, noting that past experiences like the NMS left significant debt, and highlighting that Nairobi's financing has long been insufficient to meet demands as the nation's capital.
The KSh 80 billion aims to boost the county's fiscal capacity and accelerate critical infrastructure and service delivery projects amid rapid urbanization, aging systems, and growing population pressures. Priority areas include road rehabilitation and expansion, non-motorized transport infrastructure, modernization of solid waste management, market upgrades, improvements in water and sanitation services, enhanced street lighting, and public safety initiatives. This partnership is expected to revitalize Nairobi's outlook, address longstanding resource constraints, and demonstrate effective intergovernmental cooperation to deliver tangible benefits to residents.
