Kenya: Mudavadi Defends Ruto-Sakaja Ksh80b Deal, Says It Will Transform Nairobi Without Undermining Devolution

Nairobi — Prime Cabinet Secretary Musalia Mudavadi has defended the KSh80 billion cooperation agreement between the National Government and Nairobi City County, terming it a lawful and transformative framework designed to fix the capital's long-standing infrastructure challenges.

Appearing before the Senate Standing Committee on Devolution and Intergovernmental Relations, Mudavadi clarified that the agreement does not transfer functions from the county to the national government, but instead strengthens devolution through structured collaboration.

"The joint steering committee which I chair is not the implementing committee. We meet quarterly," Mudavadi said. "Implementation is led by Governor Sakaja through a hands-on committee that works closely with technical teams from both the national government and City Hall."

He emphasized that the KSh80 billion allocation will be captured within the national government's budget and implemented strictly in line with the Public Finance Management (PFM) Act.

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"All projects under this agreement are within the law. There is full compliance with the PFM Act," he stated.

Mudavadi noted that the cooperation framework will run for two years, with the possibility of extension based on performance and outcomes. He anchored the deal in Section 6 of the Urban Areas and Cities Act, insisting it is both legal and necessary to fast-track Nairobi's development.

"This is not a takeover. It is a partnership to elevate Nairobi to the standards of a modern international city," he said.

"Devolution flows within this agreement. We are supporting it. It is now the responsibility of the Governor to deliver with the support provided," he said.

Meanwhile, the implementation committee chaired by Governor Sakaja has already convened three meetings at City Hall to finalize budgets and project timelines. Early works are underway, including drainage upgrades along the Nairobi River and road recarpeting in several areas.

The County is also set to launch an end-to-end garbage repurposing initiative in April, aimed at improving waste management and sustainability in the city. The National Government will support by footing 30 per cent of the cost while Nairobi County Government will pay 70 per cent.

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