The Senate has recommended the suspension of the Sh80 billion cooperation agreement between the national government and Nairobi City County, citing governance gaps and concerns that the arrangement could amount to an unconstitutional transfer of county functions.
In a report tabled before the House, the Senate Committee on Devolution and Intergovernmental Relations said the agreement, signed in February 2026 at State House, appeared to transfer county functions to the national government without following the safeguards required under the Constitution.
The committee said the 17-clause agreement was presented as a cooperation arrangement but contained elements that resembled a transfer of functions under Article 187.
“The cooperation agreement between the National Government and Nairobi City County Government will be temporarily suspended pending the resolution by the parties of the issues arising from the committee’s observations and analysis of the agreement,” reads the report.
Among the issues flagged was the governance structure created under the agreement, which the committee said gives policy oversight powers to a steering committee dominated by representatives from the national government, while the Nairobi governor only chairs the implementation committee.
“It is unclear whether the arrangement in substance remains one of cooperation under Article 189 or has taken on characteristics more consistent with a transfer of functions under Article 187 without the safeguards that would ordinarily attend such a transfer,” reads the report.
- Sakaja surfaces after evading police over Senate summons
- Court declines Sakaja’s bid to block NMG over protest coverage
The committee also questioned the financing framework of the agreement, noting that the Sh80 billion implementation cost mentioned by officials was not provided for anywhere in the document.
The amount was only cited by Prime Cabinet Secretary Musalia Mudavadi and Nairobi Governor Johnson Sakaja when they appeared before the committee, the report stated.
The lawmakers further raised concerns that the agreement did not clearly define the responsibilities, roles and financial contributions of both levels of government.
“The absence of this specificity makes it difficult to establish where the national government’s role ends and where the county government’s role begins, blurring the line between cooperation and assumption of county functions,” reads the report.
The committee also criticised the public participation process, saying it was conducted after the agreement had already been signed instead of before implementation as required by Article 118 of the Constitution.
“The exercise conducted on the agreement took place after its execution and coming into force,” reads the report.
The Senate panel further noted that the deal lacked clear mechanisms for legislative oversight despite involving billions of shillings in public resources.
“The agreement does not provide for any reporting to the Nairobi City County Assembly or the Senate, notwithstanding the commitment of substantial public resources to the implementation of core county functions,” reads the report.
The committee also questioned the inclusion of plans for a Nairobi Metropolitan Police, saying the proposal contained in White Paper 7 was not referenced in the agreement.
Governor Sakaja, who appeared before the Senate committee on February 26, 2026, defended the arrangement, saying Nairobi required additional support because of its unique role as the country’s capital and a metropolitan hub.
He argued that the county’s current resources, estimated at Sh33.8 billion from equitable share and own-source revenue, were insufficient to serve a population estimated at seven million people.
The Senate’s concerns now leave the agreement’s implementation uncertain, with the national government and Nairobi County expected to address the issues raised before any further implementation.
Email your news TIPS to Editor@nairobilawmonthly.com, and to advertise with us, call +254715061658 anytime of the day
