Inside President Ruto, Governor Sakaja's Ksh.80B plan to fix Nairobi

The cooperation agreement between the National Government and Nairobi City County Government becomes the second time City Hall has sought the intervention of the central government since the advent of devolution.

While City Hall is granted constitutional autonomy on self-administration - and Article 187 of the law envisioning transfer of functions - the scope of the collaboration agreement seemingly paints an administration unable to carry out its role, seeking support, and sheltering under Article 189 of the Constitution, which spells out cooperation between the two levels of governments.

The agreement shall be directed towards strengthening the performance of county functions and improving its quality and efficiency.

While former President Uhuru Kenyatta in 2020 turned to the military for remedial measures, bringing in now retired Major-General Mohamed Badi to administer the county after former Governor Mike Sonko handed over key functions, the format President William Ruto will take remains unknown despite downplaying any NMS-style like takeover.

On the financing mechanism, though the framework envisions a joint agreement for financing of all programmes, questions abound over the county’s financial viability as the richest, with own source revenue collections hitting the highest in the FY 2024/25, fetching more than Ksh.12.1 billion. President Ruto however decried the constitutional financial architecture for the devolved units, prescribing a substitution.

The parties shall jointly agree on the modalities for financing all programmes and projects undertaken pursuant to this agreement, including the sources of funding.

“The fiscal and operational framework of the county’s financing was not designed for a capital city of this scale and responsibility. Nairobi carries national, regional and global obligations, but is funded largely through the same formula as other counties,” said the President.

Nairobi Governor Johnson Sakaja added: “In the 13 years of devolution, Nairobi City County has not had the opportunity to benefit and leverage from its uniqueness as a capital city to get special attention to get support and resources for its people.”

While City Hall has been bedeviled by a mix of maladministration and failures in financial management, the cooperation agreement which comes six years after former Governor Mike Sonko’s outing at State House, symbolizes low faith in its leadership.

The National Government is to inject additional Ksh.80 billion funding to Nairobi County under the new deal aimed at strengthening the performance of county functions, and improving service delivery to the capital city.

In the deal, a steering committee has been established to be chaired by Prime Cabinet Secretary Musalia Mudavadi while Governor Sakaja will be the vice chair. The steering committee shall be meeting quarterly.

Others that will sit in the steering committee include Interior CS Kipchumba Murkomen, his Treasury counterpart John Mbadi as well, CSs in charge of Lands, Environment, Energy, Water and two attorneys.

The deal has also established an implementation committee that will be chaired by Governor Sakaja.

“This is not a transfer of functions…I have no interest in running Nairobi, let Sakaja and his people do their work,” President Ruto stated.

The deal signed Tuesday will see the National Government inject additional funding amounting to Ksh.80 billion, four times more than what it received in the current financial year.

Ksh.3.7 billion will be used to modernise street lighting in the capital city, Ksh.1.5 billion to purchase transformers for last mile connectivity in Nairobi, a total of Ksh.5 billion for water treatment and supply to the ballooning population in Nairobi.

Ksh.9 billion has been allocated in the deal for a 27km sewer line in the northern corridor, with Ksh.4 billion set to be used for waste management.

The collaboration agreement will also cover security, with the deal seeking to have Nairobi Metropolitan Police Unit that will collaborate with city askaris to restore order in the capital city.

The deal reads in part; “the agreement shall become effective fourteen days from the date of execution and shall remain in force for an initial period of 24 months from the date of execution subject to renewal.”

The document now goes to the County Assembly of Nairobi to facilitate public participation within the next 14 days.

Parties may terminate this agreement mutually or a party may terminate this agreement by giving six months’ notice to the other party.

The national government and county government have insisted that it is not a transfer of function but a collaboration.