Senators question Ksh80B Nairobi cooperation agreement with national govt
By Ndiritu Wanjiru, March 30, 2026Senators have voiced strong reservations over the Ksh80 billion cooperation agreement between the national government and Nairobi City County, questioning whether the move signals a return to the controversial Nairobi Metropolitan Services (NMS) model.
During a session with Prime Cabinet Secretary Musalia Mudavadi on Monday, March 30, 2026, members of the Senate Devolution Committee, led by the chairperson of the committee, Mohamed Abbas, raised concerns about the potential erosion of county autonomy.
Senators specifically challenged the power-sharing structure, questioning why the prime cabinet secretary was taking an oversight role in functions that constitutionally belong to the governor.
“Hon Musalia, now that you have entered an agreement with Nairobi City County, where does that leave the county assembly?” Mohamed Abbas asked.
Other members sought clarity on how the funds would be audited, expressing fears that the agreement might bypass legislative oversight by the Senate and the County Assembly.
Mudavadi defends cooperation
In response, Hon. Mudavadi defended the framework, clarifying that it is not a transfer of functions but a strategic coordination effort allowed under Article 189 of the Constitution and the Intergovernmental Relations Act.
“The Intergovernmental Relations Act is the anchor to this cooperation agreement. It allows county governments and the national government to cooperate. It is not an alien concept,” Mudavadi said.
The 24-month agreement aims to address Nairobi’s unique status as Kenya’s capital and a global diplomatic hub, contributing 27.5 per cent of the country’s gross value added.
Mudavadi dismissed fears of a power grab, stating that the framework represents a deliberate and structured effort by both levels of government to strengthen collaboration rather than undermine county authority.
Key projects under the agreement include: Installation of 50,000 streetlights, construction of a 54km sewer line, expansion of water supply by 50,000 cubic meters, the city flood resilience master plan under the Nairobi Rising Program, waste-to-energy initiatives, river regeneration and a ward-structured Metropolitan Police Service framework to improve security and service delivery
On legislative oversight, Mudavadi emphasised that the agreement is anchored in Section 6 of the Urban Areas and Cities Act, which recognises Nairobi’s special status. Accountability mechanisms include a joint steering committee co-chaired by the prime cabinet secretary and Governor Johnson Sakaja, and an implementation committee chaired by the governor.
Regarding Kshs14.8 billion in pending bills inherited from the NMS, Mudavadi detailed a Treasury-led plan, led by a dedicated team under the former auditor general, to settle debts via budget allocations and government bonds.
Mudavadi defended the partnership as essential for Nairobi’s development, asserting that a functional, world-class capital is a national and regional imperative, not merely a county concern.
By centring the strategy on coordination rather than power transfer, the framework seeks to deliver critical infrastructure while maintaining the constitutional integrity of the Nairobi City County government.