The national government decisively moved to consolidate its control of the capital city by allocating to Nairobi Metropolitan Services (NMS) the city’s entire budgetary funding in the 2020/2021 financial year budget.

The NMS, established in February was allocated Sh26.4 billion by Treasury including Nairobi County’s equitable revenue share from the Sh316.5 billion divided among the 47 devolved units. 

This, is in spite Nairobi Governor Mike Sonko’s dramatic retreat from a deal to surrender control of the city to the NMS, a docket created under the Presidency.

Sonko had lamented he did not fully comprehend the deal and launched a legal process to reverse the Deed of Transfer. 

In a choreographed move by the national government, not only did the Treasury give NMS Nairobi County’s equitable share but also handed the Mohammed Badi-led NMS Sh9.78 billion from the city’s own source revenue.

The implication is the Sh9.78 billion of revenue collected by county staff will not be channeled to NMS leaving the Sonko-led government with excess collection.

Yatani: “In order to facilitate performance of the transferred functions, the Nairobi Metropolitan Services has been allocated Sh26.4 billion in the financial year 2020/2021, which includes Sh15.95 billion from Nairobi City County’s equitable revenue share for the financial year, Sh660 million as additional conditional allocations related to the transferred functions.

The balance of Sh9.78 billion will come from the county’s own source.” revenue,” National Treasury Cabinet Secretary Ukur Yatani read in Parliament yesterday

Mukuru slum’s renewal project that was erstwhile under the county government has also moved to the NMS with national treasury allocating Sh1.5 billion towards the project.

The national government has also developed an integrated system for revenue management to be deployed in counties.