Nairobi, Kenya — Nairobi is set to receive KSh80 billion under a new cooperation framework between the national government and the Nairobi City County Government, in what is being described as one of the largest intergovernmental financing arrangements in recent years.
The funds — nearly four times the county’s current allocation — are earmarked for critical infrastructure and service delivery projects aimed at improving the capital’s urban systems and quality of life.
Major Infrastructure Investments
According to the framework, the allocation will support key sectors, including:
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KSh3.7 billion for modernization of street lighting
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KSh1.5 billion for transformers to strengthen last-mile electricity connectivity
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KSh5 billion for water treatment and supply
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KSh9 billion for construction of a 27-kilometre sewer line in the northern corridor
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KSh4 billion for waste management improvements
The investment is expected to address longstanding infrastructure gaps in Nairobi, East Africa’s largest urban economy and a regional hub for business, diplomacy, and innovation.
However, Edwin Sifuna has called for the suspension of the agreement, arguing that the process violates the spirit and letter of Kenya’s Constitution on devolution.
In a statement released Wednesday, Sifuna faulted the absence of public participation prior to the signing of the agreement. He also criticized the 14-day window set aside for public input, describing it as inadequate for meaningful civic engagement in a capital city of Nairobi’s size and complexity.
The senator further questioned a clause limiting public participation to amendments, arguing that it presumes acceptance of the deal and denies residents the opportunity to reject it outright.
Attention has also turned to the steering committee overseeing implementation. The committee is chaired by Prime Cabinet Secretary Musalia Mudavadi, with Nairobi Governor Johnson Sakaja serving as vice chair.
Sifuna argues that the majority of committee members are drawn from the national government, raising concerns about balance and the autonomy of the county government.
While acknowledging Nairobi’s strategic importance as Kenya’s capital, the senator maintains that constitutional mechanisms already exist to channel additional resources to counties without direct national government control over devolved functions.
As an alternative, Sifuna proposes that national government agencies settle outstanding debts owed to the county — estimated at over KSh100 billion — to enable reinvestment in local projects and clearance of pending bills.
He has also called for:
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Full transfer of devolved functions to counties
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Dissolution of the Kenya Urban Roads Authority and Kenya Rural Roads Authority
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Direct channeling of road construction funds to county governments in line with devolution principles
Sifuna has warned that if the agreement proceeds unchanged, he will pursue all legal avenues available, including formally tabling the matter before the Senate.
The unfolding dispute adds a new dimension to Kenya’s ongoing national conversation on devolution, intergovernmental relations, and the balance of power between county administrations and the central government
As the debate intensifies, the fate of the KSh80 billion framework may shape not only Nairobi’s development trajectory but also the future of intergovernmental financing models across Kenya.
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