Nairobi pending bills drop by Ksh.32B as own-source revenue climbs to Ksh.13.8B

Appearing before the Senate Committee on Devolution to address concerns over budget absorption and stalled development projects for the 2022/2023 financial year, Sakaja revealed that his administration inherited Ksh.118 billion in pending bills — including Ksh.16 billion left behind by the defunct Nairobi Metropolitan Services (NMS).

He said the county has since reduced the figure to Ksh.86 billion over the past three years.

“KSh118 billion in pending bills is a lot of money — that is what we found. The amount has now reduced to Sh86 billion in three years,” Sakaja told senators. “As we reduce this, we must remember Nairobi is a service county. To raise more revenue, we digitised our collection platform and moved from multiple permits to a single business permit, which has improved service delivery and boosted revenue.”

Sakaja noted that although NMS was allocated KSh27 billion for development, it still left pending bills tied to stalled projects.

The Governor also announced that Nairobi collected Ksh.13.8 billion in own-source revenue this year — the highest since the advent of devolution and a significant jump from Sh10.8 billion three years ago.

“KSh13.8 billion is the highest we have ever collected. We have raised the bar, and we expect to achieve even more this financial year,” he said, adding that markets, stadiums, and other major development projects are underway.

Sakaja highlighted major accomplishments through the Ward Development Fund (WDF), including more than 140 completed projects across all 85 wards. These include road works, construction of Early Childhood Development (ECDE) centres, and renovation of social halls and sports facilities.

He confirmed that the construction of Woodley, Kihumbuini, and City Stadium is ongoing.

On street lighting, the Governor said progress continues but could be improved if Nairobi received a fairer share of electricity-related levies. Nairobi residents pay an estimated KSh8 billion annually in electricity bills, including a Rural Electrification Levy — despite being an urban county.

“We have begun conversations so Nairobi can get a fair consideration. Part of this money should help us light our streets for security,” he said.

Responding to questions on the city’s road network, Sakaja said Nairobi is currently undertaking KSh2.1 billion worth of road projects, many in partnership with the national government.

However, he criticized what he termed an unfair national funding structure, where counties collectively manage 70% of Kenya’s road network but receive only Sh3 billion out of Sh119 billion allocated nationally for roads.

“It is time we established a fair funding model. If counties have 70% of the roads, then they should get about 70% of the funds,” he urged, calling on senators to spearhead reforms.

Sakaja said a more equitable allocation would help counties clear pending works and speed up service delivery.

The Governor appeared before the committee as part of ongoing Senate oversight of Nairobi’s budget performance and stalled development projects.