Nairobi-State Deal Under Senate Review: Sakaja Defends Sh80bn Pact

by Lucas Fernandez – World Editor

Nairobi – Nairobi Governor Johnson Sakaja on Wednesday defended a cooperation agreement with the national government before the Senate’s Devolution and Intergovernmental Relations Committee, asserting its legality and necessity amid scrutiny over its financial implications and potential impact on county functions.

Sakaja appeared before the committee to address concerns raised by senators regarding the intent, legality, and financial oversight of the agreement, which has drawn attention due to its scale and potential to reshape the governance of Kenya’s capital. He maintained that the agreement is not a transfer of functions, as outlined in Article 187 of the Constitution, which would necessitate a formal deed of transfer and potentially lead to the creation of an entity similar to the now-defunct Nairobi Metropolitan Services (NMS).

“This represents not a transfer of functions. We shall continue running as a county, and the National Government will arrive in to provide additional resources for development,” Sakaja stated, according to reports from The Star and Parliament of Kenya.

The governor argued that Nairobi’s current budgetary allocation is insufficient to meet the demands of a rapidly growing city, citing a significant disparity between its resources and those of comparable global capitals. He contrasted Nairobi’s approximately 45 billion shillings budget with Paris’s 1.5 trillion shillings, despite Nairobi having a larger population of seven million compared to Paris’s two million.

Sakaja emphasized the legal basis for the cooperation, referencing Section 6 of the Urban Areas and Cities Act, which he said mandates cooperation between national and county governments. He described the agreement as “long overdue,” noting that 13 years have passed since the implementation of devolution in Kenya.

The governor also highlighted existing collaborative efforts, pointing to a recent 1 billion shilling contribution from the national government towards the construction of additional classrooms in Nairobi. He framed the agreement as a pragmatic solution to the city’s unique challenges as both a county and the nation’s capital and diplomatic hub.

Senators questioned Sakaja on the accountability of the 80 billion shilling package associated with the agreement, given the involvement of both levels of government. Sakaja clarified that oversight responsibilities are constitutionally divided, with the National Assembly overseeing national government expenditure and the Senate safeguarding devolved interests. He asserted that existing statutory audit institutions would also play a role in monitoring the use of public funds.

Sakaja went further, stating his willingness to stake his political future on the success of the agreement. “I am ready to stake my career on this agreement due to the fact that I am sure that if we implement it as we should, everyone will say ‘two terms’. Nothing else can work. Nothing else can solve Nairobi’s financing crunch,” he said.

The Nairobi City County Assembly has initiated public participation forums to gather input on the Cooperation Agreement, with hearings taking place at Charter Hall, City Hall, and across all 17 sub-counties, as debate continues over the future governance and financing of the capital.

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