Nairobi Sets Aside 70% of Ksh46.98 Billion Budget for Salaries and Operations

Nairobi City County has introduced a Ksh46.98 billion budget for the 2026/2027 financial year, outlining its expenditure priorities for the upcoming period, with the majority of resources dedicated to recurring expenses. Based on the County’s Citizen Budget Estimates published on May 11, Ksh32.89 billion has been designated for recurring expenditures, covering wages, operational costs, maintenance activities, and service provisions. This constitutes approximately 70 percent of the total budget, with the remaining Ksh14.09 billion reserved for development initiatives and investments across multiple sectors. The health sector will receive the highest allocation among all departments, with Ksh13.7 billion allocated to medical services, pharmaceutical supplies, emergency care, referral systems, hospital infrastructure, nutrition programs, and digital transformation. The departmental distribution indicates that Boroughs and Public Administration rank as the next highest-funded areas, receiving Ksh5.46 billion to focus on county administration coordination, disaster management, emergency response, and service delivery at local and community levels. Environment, Water, Energy and Natural Resources departments have been assigned Ksh5.04 billion to tackle water supply issues throughout the city, along with waste management, sanitation services, and environmental sustainability initiatives. The County has detailed plans to drill 10 boreholes each year, install 285 water storage tanks, construct 10 sanitation facilities, extend sewer coverage from 52 percent to 65 percent, and boost water supply capacity to approximately 665,000 cubic meters daily. Mobility and Works will be allocated Ksh4.03 billion for road construction and rehabilitation projects, storm water drainage enhancements, traffic control systems, and street lighting installations. Furthermore, the County Assembly has been provided with Ksh2.8 billion to support its legislative and supervisory responsibilities, while Ward Development Programs will receive Ksh2.15 billion to finance the completion of current projects, community-based initiatives, and infrastructure upgrades. Nairobi County aims to generate approximately Ksh24.12 billion from its own revenue streams, including business permits, parking charges, land taxes, market fees, building approvals, and other municipal levies. The remaining Ksh22.86 billion is anticipated from the national government’s equitable allocation, supplemented by unconditional and conditional grants from development partners. The county budgeting procedure involves four critical phases: development under the County Executive through strategic planning documents and financial estimates; ratification by the County Assembly; execution by county departments with quarterly progress reports; and evaluation to ensure fiscal responsibility and optimal resource utilization. While focusing on future expenditure plans, Nairobi continues to address its current financial challenges following identification as having the largest outstanding debt, amounting to Ksh86.8 billion, which exceeds twice its current annual budget.