Nairobi Governor Sakaja Johnson told a Senate committee Monday that he inherited a staggering Sh118 billion ($912 million) in pending bills when he took office in August 2022, a debt mountain he has since trimmed to Sh86 billion.
Appearing before the Senate County Public Accounts Committee to answer questions on low budget absorption and stalled projects in the 2022-2023 financial year, Sakaja laid much of the blame on the defunct Nairobi Metropolitan Services (NMS), the national government body that ran the capital from 2020 to 2022.
“The NMS handed over Sh16 billion in pending bills alone, some of them linked to projects that remain stalled despite the entity having received Sh27 billion for development,” Sakaja said.
He described the Sh118 billion figure as “a lot of money” that has weighed heavily on the county’s ability to deliver services and new infrastructure.
“Three years later we have brought it down to Sh86 billion. That is real progress, but we are still paying for the past while trying to build the future,” the governor told the senators.
Sakaja highlighted revenue reforms as a bright spot, saying the county collected a record Sh13.8 billion in own-source revenue this financial year — the highest since devolution began in 2013 — up from Sh10.8 billion when he took office.
“We digitised revenue collection and moved from multiple business permits to a single business permit. The result is better service delivery for Nairobians and more money in the county’s coffers,” he said.
The governor said the extra revenue is already visible on the ground. Through the Ward Development Programme, contractors have completed more than 140 projects across Nairobi’s 85 wards, including new early childhood education centres, renovated social halls and upgraded sports facilities.
Major stadium projects at Woodley, Kihumbuini and the historic City Stadium are all under construction, Sakaja added.
On street lighting — a persistent complaint from residents — Sakaja said progress would be faster if the capital received a fairer share of national electricity levies.
“Nairobians pay Sh8 billion a year in electricity bills, yet part of that money goes to the Rural Electrification Programme levy even though we are a fully urban county,” he said. “We have started talks with the national government so that a portion of those funds can come back to light our streets and improve security. I am confident we will get a solution.”
Road maintenance drew sharp criticism from the governor, who argued that the current national funding model short-changes counties.
“Counties are responsible for roughly 70% of Kenya’s road network, yet out of the Sh119 billion allocated nationally for roads, only Sh3 billion comes to the 47 counties,” Sakaja said. “It is time for a fair formula. If we control 70% of the roads, we should get close to 70% of the money.”
He urged the Senate to champion changes to the road maintenance levy disbursement system, saying a more equitable share would allow counties clear backlogs and speed up service delivery.
Despite the inherited financial burden, Sakaja insisted that visible change is happening across the city.
“There is a lot happening on the ground right now. Roads are opening up, markets are being built, stadiums are rising. We are delivering with the resources we have, and we will do even more as revenue grows and the old debt shrinks,” he said.
The Senate committee, chaired by Vihiga Senator Godfrey Osotsi, is expected to release a report on Nairobi’s financial management and project implementation in the coming weeks.
