President William Ruto presided over the signing of a landmark cooperation agreement between the National Government and Nairobi City County, setting in motion an initial Sh80 billion capital package aimed at transforming the capital.
The agreement was formally executed by Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs Dr. Musalia Mudavadi on behalf of the National Government and by Governor Johnson Sakaja on behalf of the Nairobi City County Government.
Anchored in Article 189(2) of the Constitution, the Intergovernmental Relations Act and Section 6 of the Urban Areas and Cities Act, the pact establishes a structured framework for cooperation between the two levels of government while affirming that no constitutional functions are being transferred.
President Ruto underscored Nairobi’s unique status as the seat of the Republic and nerve centre of national administration, saying the capital carries national, regional and global obligations.
“For many visitors and investors, Nairobi is not just the face of Kenya, Nairobi is Kenya. That standing carries a serious obligation a capital city must work,” Ruto affirmed.
Further, he clarified that the agreement enhances structured national support without undermining devolution.
“For the avoidance of doubt, I have no interest in running the city of Nairobi. The Governor and his team must protect the city. But I have an obligation as President of Kenya to assist the city of Nairobi,” stated the President.
Notably, the cooperation framework focuses on four key priority areas: water and sewerage; roads, bridges and drainage; housing and related infrastructure including lighting; and solid waste management alongside Nairobi Rivers regeneration.
On street lighting, the President noted that out of approximately 70,000 lighting points in the city, only about 21,000 are operational.
“To address this, we are committing Sh3.7 billion towards street lighting modernisation and expansion. We will complete 10,000 and install an additional 40,000 lighting points,” he announced, adding that future road contracts will incorporate lighting by design and progressively transition to solar solutions.
According to President Ruto, the National Government will further invest Sh1.5 billion in transformers and last-mile electricity connections in informal settlements, where residents sometimes pay up to 150 percent more for illegal power connections.
On water and sanitation, Ruto announced a KSh2.1 billion investment at Ng’ethu Treatment Plant to stop daily losses estimated at 50,000 cubic litres, alongside Sh3 billion for the Gigiri–Shauri Moyo evacuation corridor.
“Additional funding is being mobilized for Maragua IV and Northern Collector II to secure long-term water stability,” he added.
Under the Nairobi River Regeneration Programme, KSh9 billion will fund two parallel 27-kilometre trunk sewer lines along the Nairobi River corridor, while Sh6 billion will support construction of a new sewer treatment plant with a capacity of 60,000 cubic metres per day.
Similarly, the President disclosed that an additional Sh3 billion will go towards last-mile sewer connectivity and Sh15 billion is earmarked for long-term expansion.
In roads and drainage, President Ruto reported that Sh8.7 billion has been allocated, including KSh2 billion to complete Phase One of KURA roads and Sh1.7 billion for a 59-kilometre road package beginning April 2026. A further Sh1 billion is dedicated to drainage improvements to address perennial flooding.
Speaking after signing the agreement, Prime Cabinet Secretary Dr. Mudavadi described the move as bold and necessary to safeguard Nairobi’s competitiveness.
“It takes a lot of courage for a leader to move away from a comfort zone and move to a territory that everybody fears, but within the law,” Mudavadi remarked.
He noted that Nairobi faces increasing competition from other regional capitals and must break away from complacency to retain its hub status.
On his part, Governor Sakaja welcomed the partnership, terming it long overdue since the advent of devolution in 2013.
“Today is a great day for the capital city of the Republic of Kenya, in the 13 years of devolution, Nairobi has not had an opportunity to leverage and benefit from its unique position as the capital city,” he reiterated.
Equally, he emphasised that the agreement is not a transfer of functions but a collaboration grounded in law and mutual respect.
“Devolution is not a competition. Devolution is a collaboration,” Sakaja asserted, adding that Nairobi’s nearly seven million residents require enhanced fiscal and operational support beyond the equitable share allocation.
Meanwhile, Chief of Strategy and Execution Adan Mohamed said the agreement affirms Kenya’s constitutional architecture, recognising the national and county governments as distinct yet interdependent.
With County Assembly oversight and public participation expected before full implementation, President Ruto maintained that the structured partnership is designed to deliver measurable impact and elevate Nairobi into a globally respected African metropolis.
“We must raise our ambition. We cannot continue to make peace with mediocrity,” he urged.
By Naif Rashid/Michael Omondi
