Sakaja: Nairobi Inherited Sh118 Billion Debt, Now Cutting It Down as Revenue Hits Historic High
Nairobi Governor Johnson Sakaja has revealed that City Hall is still battling massive pending bills inherited from previous administrations, even as his government posts record revenues and accelerates development across the capital.
Appearing before the Senate Committee on Devolution, Sakaja said his administration inherited Sh118 billion in pending bills when he took office in 2022. The figure has since reduced to Sh86 billion.
“Sh118 billion in pending bills is a lot of money. The amount has reduced to Sh86 billion in three years. As we reduce this, we must remember this is a service county,” he told senators.
Debt Includes Former NMS Obligations
Of the inherited debt, Sh16 billion belonged to the now-defunct Nairobi Metropolitan Services (NMS), which handed back operations to the county in 2022.
Sakaja appeared before the Senate committee to address budget utilisation and delayed development projects for the 2022/2023 financial year.
Digitisation Boosts Revenue to Record Sh13.8 Billion
The governor attributed increased revenue to digitisation and reforms in licensing.
“To raise more revenue, we digitised our collection platform and shifted from multiple business permits to a single permit system. This has improved service delivery and boosted revenue,” he said.
Nairobi has collected Sh13.8 billion this year — the highest since the start of devolution in 2013.
“Sh13.8 billion is the highest we have ever collected. We have raised the bar, and we hope to achieve even more this financial year,” he stated.
Stalled Projects Revived Through WDF
Sakaja reported progress in development projects funded through the Ward Development Fund (WDF), saying more than 40 projects have been completed across 85 wards.
Through WDF, the county has built new Early Childhood Development Education (ECDE) centres, renovated social halls, and refurbished key sports facilities.
Major stadiums — including Woodley, Kihumbuini, and City Stadium — are currently under construction.
Road Works Worth Sh2.1 Billion Underway
The county has also launched road improvement projects totalling Sh2.1 billion. Works are ongoing across several areas to enhance mobility and ease congestion.
But Sakaja insisted that Nairobi needs a fairer share of electricity levies to support critical urban services.
“Nairobians pay Sh8 billion in power bills, yet these bills include a rural electrification charge. We want part of this funding redirected to lighting our streets for security,” he said.
Governor Questions Allocation of National Road Funds
Sakaja further raised concerns over the National Government’s distribution of road funds, arguing that counties manage most roads yet receive only Sh3 billion out of the Sh119 billion allocated nationwide.
He urged the Senate to push for more equitable resource allocation to ensure the country’s economic engine — Nairobi — receives its fair share.
As the county struggles to reduce long-standing debt while upgrading infrastructure, Sakaja says Nairobi’s reform agenda remains focused on digitisation, development, and streamlining revenue collection to ensure long-term financial stability.
In other news:KPLC Rolls Out New Meter-Reading Technology to End Human Error
Sakaja: Nairobi Inherited Sh118 Billion Debt, Now Cutting It Down as Revenue Hits Historic High