The cooperation pact between the National Government and Nairobi City County Government marks the second instance City Hall has sought central government intervention since devolution began.
While City Hall enjoys constitutional autonomy on self-administration – with Article 187 envisions function transfers – the collaboration agreement portrays an administration struggling to fulfill its responsibilities, seeking support and invoking Article 189 of the Constitution, which outlines intergovernmental cooperation.
The agreement aims to enhance county function performance and improve service quality and efficiency.
When former President Uhuru Kenyatta in 2020 sought military remedies by appointing now retired Major-General Mohamed Badi to administer the county after former Governor Mike Sonko relinquished key functions, President William Ruto has downplaying any NMS-style takeover, though his approach remains unclear.
Regarding financing mechanisms, while the framework proposes joint program financing, concerns exist about the county’s financial viability despite being the wealthiest, with own source revenue collections reaching Ksh.12.1 billion in the FY 2024/25. President Ruto, however, criticized the constitutional financial structure for devolved units, advocating for its replacement.
The parties will jointly determine financing modalities for all programs and projects under this agreement, including funding sources.
“The fiscal and operational framework of the county’s financing was not designed for a capital city of this scale and responsibility. Nairobi bears national, regional and global obligations, yet is funded primarily through the same formula as other counties,” stated the President.
Nairobi Governor Johnson Sakaja added: “In the 13 years of devolution, Nairobi City County has not had the chance to capitalize on its uniqueness as a capital city to receive special attention and support for its people.”
While City Hall has faced administrative challenges and financial management failures, this cooperation agreement – six years after former Governor Mike Sonko’s State House meeting – indicates limited confidence in its leadership.
The National Government will provide additional Ksh.80 billion to Nairobi County under this new agreement focused on strengthening county functions and improving service delivery to the capital.
Under this agreement, a steering committee chaired by Prime Cabinet Secretary Musalia Mudavadi with Governor Sakaja as vice chair will meet quarterly.
Other committee members include Interior CS Kipchumba Murkomen, Treasury CS John Mbadi, CSs for Lands, Environment, Energy, Water, and two attorneys.
The agreement also establishes an implementation committee led by Governor Sakaja.
“This is not a function transfer… I have no interest in running Nairobi, let Sakaja and his team carry out their work,” President Ruto stated.
The Tuesday-signed agreement will see the National Government provide Ksh.80 billion, four times more than the current fiscal year allocation.
Ksh.3.7 billion will modernize street lighting, Ksh.1.5 billion will purchase transformers for last mile connectivity, and Ksh.5 billion will fund water treatment and supply for Nairobi’s growing population.
Ksh.9 billion has been allocated for a 27km sewer line in the northern corridor, with Ksh.4 billion designated for waste management.
The collaboration will also address security, establishing a Nairobi Metropolitan Police Unit to collaborate with city officers to restore order in the capital.
The agreement states: “This agreement will take effect fourteen days from execution and remain in force for an initial period of 24 months, subject to renewal.”
The document will now go to the County Assembly of Nairobi for public participation within the next 14 days.
Parties may mutually terminate this agreement or a party may terminate it by providing six months’ notice to the other party.
Both national and county governments maintain this is not a function transfer but a collaborative effort.
The authors are Ayub Abdikadir and Stephen Letoo.