The Nairobi County Government can now roll out its development agenda after the County Assembly approved a Sh49.27 billion budget for the 2026/27 financial year, ending weeks of uncertainty that had slowed implementation of key projects. The spending plan opens the door for investment in roads, hospitals, school feeding, affordable housing, markets, environmental programmes and other services expected to benefit residents across the city.
The budget, themed Consolidating the Gains, Securing the Future, is the fourth under Governor Johnson Sakaja's administration and marks an increase of Sh4.67 billion from last year's Sh44.6 billion allocation.
County officials say the budget was shaped by public participation and directs resources to areas considered most important to improving services and supporting economic growth.
Finance and Economic Planning Executive Ibrahim Auma said priority has been given to road construction, flood mitigation, healthcare, water and sewerage infrastructure, affordable housing, environmental conservation and improving public service delivery.
“Our priority is to ensure available resources are channelled towards projects that have the greatest impact on residents. This budget moves Nairobi from institutional recovery to project completion, better service delivery, economic growth and job creation,” Auma said.
The county expects to finance the budget through Sh23.47 billion from the equitable share and grants, Sh20.86 billion generated from its own revenue, Sh3.2 billion from the Health Facilities Improvement Fund and liquor licensing, and Sh1.7 billion from projected cash balances.
Development spending has been increased to Sh14.91 billion, representing about 30 per cent of the total budget, compared with Sh13.4 billion in the previous financial year. Recurrent expenditure has also gone up from Sh31.2 billion to Sh34.36 billion.
Transport and public infrastructure are among the biggest beneficiaries, with Sh2.4 billion allocated to roads, bridges, drainage works and street lighting. The Ward Development Programme has received Sh2.255 billion, an increase from Sh2.155 billion, to support projects in Nairobi's 85 wards.
Housing also remains a major focus, with the county planning to deliver 10,000 affordable housing units through ongoing housing developments and slum upgrading projects in nine informal settlements.
Healthcare has received one of the biggest funding increases in the new budget. Allocation for construction, rehabilitation and equipping of health facilities has risen from Sh849 million to Sh1.06 billion.
The funding will support projects at Pumwani Maternity Hospital, Mama Lucy Kibaki Hospital, Mutuini Hospital and other county health facilities. Funding for medicines and medical supplies has also increased from Sh400 million to Sh600 million.
Education spending has also been enhanced. The Dishi Na County school feeding programme will receive Sh900 million, up from Sh700 million in the previous budget, while bursary funding remains at Sh793 million, translating to Sh7 million for every ward.
The budget further provides Sh491 million for construction and rehabilitation of markets, Sh190 million for the Biashara Stimulus Programme to support small and medium-sized enterprises, and Sh1.4 billion for sports, youth and Early Childhood Development Education infrastructure.
Environmental management has been allocated Sh5.3 billion to strengthen waste collection, sanitation services, water programmes and implementation of the Green Nairobi Strategy.
Another Sh421 million has been set aside to complete borough, sub-county and ward offices that will serve as one-stop service centres. The county said the lower allocation compared with last year's Sh580 million reflects completion of several facilities already under construction.
The spending plan also sets out reforms aimed at strengthening financial management. They include full operationalisation of the Nairobi City County Revenue Authority, rollout of a countywide Enterprise Resource Planning system, expansion of e-procurement, tighter expenditure controls and continued settlement of pending bills.
The county has maintained its decision not to introduce new taxes, fees or charges. Instead, it plans to improve revenue collection through better compliance, wider use of digital payment systems, improved administration of land rates and establishment of a customer care centre.
Budget Committee member Joyce Muthoni welcomed the increased allocation for pending bills, saying it would ease pressure on contractors while helping to stimulate economic activity. She also supported plans to facilitate nominated MCAs in setting up constituency offices, saying the move would strengthen oversight and representation.
The County Assembly has been allocated Sh4.5 billion to support its legislative and oversight responsibilities, up from Sh2.6 billion in the previous financial year.
Majority Leader Peter Imwatok said the approved budget gives priority to completing projects in all of Nairobi's 85 wards.
Minority Leader Antony Kiragu also supported the estimates, saying the spending plan responds to residents' needs by giving priority to infrastructure, healthcare and other essential public services.
Budget and Appropriations Committee chairman Wilfred Odalo said the committee thoroughly examined the budget before recommending its approval.
“The committee considered the views of the public and members before arriving at these allocations. Our focus was to ensure the budget supports development, improves service delivery and facilitates completion of ongoing projects across the county,” Odalo said.
Woodley Davidson Ngibuini said the county had met the constitutional requirement by allocating about 30 per cent of the budget to development expenditure.
“We have met the 30 per cent development spending threshold in this budget, and that is good in law,” he said.