The Senate has recommended the temporary suspension of an Sh80 billion cooperation agreement between the National Government and the Nairobi County Government, citing constitutional and governance concerns.
In a report tabled before Parliament, the Senate Standing Committee on Devolution and Intergovernmental Relations said the agreement appears to transfer some county functions to the National Government under Article 187 of the Constitution while presenting the arrangement as ordinary intergovernmental cooperation under Article 189.
The committee has recommended that implementation of the agreement be halted until the concerns raised are addressed and a comprehensive report submitted within 60 days.
Senators argued that the governance structure outlined in the agreement grants National Government representatives significant authority over policy and project oversight, while Nairobi Governor Johnson Sakaja would only chair the implementation committee.
The committee also questioned the source of the Sh80 billion funding, noting that the agreement itself does not specify where the money will come from or how it will be managed.
In addition, senators criticised the allocation of Sh270 million for Nairobi road improvements through a National Government agency instead of channeling the funds directly to the county government.
The report further faulted the public participation process, saying it was conducted after the agreement had already been signed, contrary to constitutional requirements.
Defending the agreement before the committee, Governor Johnson Sakaja said Nairobi faces unique challenges as Kenya’s capital city and economic hub.
“Nairobi cannot be compared with other counties. We serve more than seven million people, and the Sh33.8 billion equitable share together with our own-source revenue is simply not enough to meet the city’s growing needs,” Sakaja said.
He cited a proposed Sh50 billion Nairobi River sewerage project as an example of infrastructure that the county could not finance without support from the National Government.
Prime Cabinet Secretary Musalia Mudavadi dismissed claims that the agreement undermines devolution.
“The National Government has no intention of weakening devolution. Our objective is to accelerate infrastructure development and improve services in densely populated areas such as Kibera, Mathare and Kasarani,” Mudavadi said.
The Senate is expected to debate the committee’s recommendations and make a final decision next week.
