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

President William Ruto and Nairobi Governor Johnson Sakaja shake hands at State House, Nairobi on February 17, 2026.

President William Ruto and Nairobi Governor Johnson Sakaja have signed a cooperation agreement aimed at strengthening county functions and improving service delivery in the capital.

The deal marks the second time City Hall has sought central government support since the advent of devolution.

While Nairobi City County enjoys constitutional autonomy under Article 187, the agreement, guided by Article 189 on intergovernmental cooperation, highlights challenges in the county’s capacity to fully administer its functions independently.

The National Government will inject Ksh.80 billion into Nairobi under the deal, four times the county’s current-year funding. The funds are earmarked for key projects, including:

• Ksh.3.7 billion for modernising street lighting

• Ksh.1.5 billion for transformers to improve last-mile electricity connectivity

• Ksh.5 billion for water treatment and supply

• Ksh.9 billion for a 27km sewer line in the northern corridor

• Ksh.4 billion for waste management

The agreement also addresses security, establishing a Nairobi Metropolitan Police Unit to work alongside city askaris.

President Ruto emphasised that the deal is a collaboration, not a transfer of functions. “I have no interest in running Nairobi. Let Sakaja and his team do their work,” he said.

Governor Sakaja said the agreement provides an opportunity for Nairobi to leverage its status as the capital city to access additional resources.

“In 13 years of devolution, Nairobi has not benefited fully from its uniqueness to secure support for its people,” he said.

The deal establishes a steering committee chaired by Prime Cabinet Secretary Musalia Mudavadi, with Governor Sakaja as vice-chair. Other members include CSs for Interior, Treasury, Lands, Environment, Energy, and Water, along with two attorneys. An implementation committee will be chaired by Sakaja.

The agreement takes effect 14 days after signing and will remain in force for 24 months, with provisions for renewal or termination with six months’ notice. It will next go to the Nairobi County Assembly for public participation within 14 days.

Despite the additional funding, questions remain over the county’s financial viability, even as its own-source revenue hit Ksh.12.1 billion in FY 2024/25.

President Ruto criticised the constitutional financial framework for devolved units, describing it as inadequate for a capital city with national, regional, and global responsibilities.