Sakaja Explodes Over Nairobi Funding: ‘We Power Kenya’s Economy but Suffer Most'

Sakaja Demands New Funding Deal

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Nairobi Governor Johnson Sakaja has renewed calls for a special funding arrangement for the capital city, arguing that the current national resource sharing formula fails to reflect Nairobi’s massive economic contribution and unique service demands.

Speaking during a policy forum on urban development, Sakaja revealed that Nairobi generates an estimated $28 billion (about KSh 4 trillion) annually in Gross Domestic Product (GDP), making it the single largest contributor to Kenya’s economy.

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Despite this, he said the city continues to struggle with inadequate funding under the existing revenue allocation framework used to distribute funds to counties.

Nairobi is not just another county. It is the capital city, the economic engine of the country, and a regional hub,” Sakaja said. “Yet when it comes to resource sharing, we are treated the same as counties with vastly different responsibilities and pressures.”

The governor noted that Nairobi hosts millions of non residents daily, including commuters, businesses, diplomatic missions and national government offices, all of whom depend on city services without contributing directly to county revenue.

This, he argued, places an enormous strain on infrastructure, healthcare, security, transport, waste management, and social services.

According to Sakaja, Nairobi’s daytime population swells far beyond its official resident numbers, stretching services such as hospitals, roads, water supply and public transport.

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However, funding allocations remain largely tied to population figures and poverty indices, leaving the city underfunded relative to its workload.

He proposed a special capital city funding model, similar to arrangements seen in other global cities such as Washington D.C. and Addis Ababa, where national governments provide additional support in recognition of capital city functions.

Sakaja stressed that the proposal is not about denying other counties their fair share but about acknowledging Nairobi’s national and international role.

This is not a fight with other counties,” he said. “It is a call for fairness and realism. If Nairobi collapses, the national economy feels it immediately.”

The governor also warned that failure to address the funding gap could slow down key development projects, worsen congestion and undermine efforts to improve living conditions for city residents.

He linked adequate financing to successful implementation of initiatives under his administration, including affordable housing, urban renewal, healthcare upgrades and improved public transport.

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Sakaja called on Parliament, the National Treasury and the Commission on Revenue Allocation (CRA) to initiate discussions on revising the formula or introducing a supplementary funding mechanism for Nairobi.