Nairobi — President William Ruto on Tuesday unveiled an Sh80 billion structured financing package aimed at upgrading Nairobi into a world-class, fully functional regional capital.
The announcement came during the signing of a joint national-county cooperation framework, designed to accelerate infrastructure development in the city.
Speaking at the event, President Ruto emphasized that Nairobi's status as Kenya's capital, host to diplomatic missions, and the only United Nations headquarters in the Global South requires a governance and funding model beyond the standard county allocation.
"Today's cooperation agreement is designed to close the gap fully and within the confines of the law and the constitution," the President said.
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"Nairobi is not merely another devolved unit. Nairobi is our capital, the seat of the Republic, and the nerve center of national administration."
4-pillar plan
The Sh80 billion package will target four priority sectors:
1. Street Lighting and Safety: Sh3.7 billion will modernize and expand Nairobi's street lighting network, adding 40,000 new lighting points and upgrading 10,000 existing ones. The plan includes transitioning to solar-powered solutions and commercializing poles to generate advertising revenue.
2. Electricity for Informal Settlements: Sh1.5 billion will support transformers, prepaid bulk metering, and last-mile connections, reducing electricity costs for low-income households and curbing illegal connections.
3. Water and Sanitation: The government will invest Sh2.1 billion into the Needu water treatment plant and Sh3.3 billion into the Kikiri Shiaoyo corridor to improve supply and reduce losses. Sh9 billion is earmarked for two 27 km trunk sewer lines along the Nairobi River, Sh6 billion for a new sewage treatment plant, Sh3 billion for last-mile connectivity, and Sh15 billion for long-term sewer expansion.
4. Roads, Bridges, and Drainage: Sh8.7 billion will be spent on ongoing and new road projects, including 57 km of roads starting in April, and Sh1 billion for drainage improvements to prevent flooding.
Waste management
In addition, Sh 2 billion annually will strengthen solid waste management through circular waste systems, complementing county investments in material recovery facilities.
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The framework will see Prime Cabinet Secretary Musalia Mudavadi chair a high-level steering committee, with Nairobi Governor Johnson Sakaja as deputy, overseeing coordination between national ministries and county departments.
An implementation committee, chaired by Sakaja, will manage day-to-day project execution.
Mudavadi described the initiative as crucial for retaining Nairobi's competitive edge against emerging African capitals such as Addis Ababa, Lusaka, and Luanda.
"This collaborative approach is necessary to secure Nairobi's future as a regional economic and diplomatic hub," he said.
President Ruto noted that the package forms part of a broader vision to modernize Nairobi, including affordable housing programs, upgraded markets, improved public spaces, and the ongoing Nairobi River regeneration program, which has already employed over 45,000 young people.
Future projects include world-class sports, conference, and airport infrastructure, positioning Nairobi as a first-rank African metropolis.
"There comes a time when we must put aside partisanship and work together to take charge of our city. The impression Nairobi gives to the world is the impression of Kenya itself," Ruto said.
