From Sh80b deal to dramatic handshake: How Sakaja auctioned Nairobi to State House

President Ruto with Governor Johnson Sakaja at State House during the signing of a cooperation deal transferring key county functions. [PCS]

The image of a hunched Nairobi Governor Johnson Sakaja ceding key county functions to President William Ruto at State House yesterday was a perfect contrast to the boisterous, youthful and hopeful leader that Nairobians elected in August 2022.

When he sought office, the man appeared to have all it takes to be a good Nairobi boss; the charm, the quick smile that would include a pat on the back for supporters, the energy and clean-cut dressing style won many a heart during campaigns. He was armed with big plans, eloquently put, such that he won against competitors during debates.

He even promised to build a city metro commuter light rail, construct a new bus terminus and create a green army to manage waste and beautify the city, apart from constructing a rapid transport and light railway network to make Nairobi a modern, functional city.

Sakaja also spoke highly of how healthcare and sanitation would be managed through upgrading public hospitals, improving water supply and building a waste-to-energy recycling plant in Dandora.

Only last week, Sakaja denied claims that a deal, such as what materialised yesterday, was in the offing, when Nairobi Senator Edwin Sifuna said it would be illegal if implemented.

“That is fake news because no powers or functions have been ceded to the national government,” Sakaja responded.

Sifuna told Sakaja that for such a deal to work constitutionally, there has to be a deed of transfer of functions, which has to be approved by the county assembly.

Nairobi residents celebrated because of the lofty promises that the city was to become functional again under the slogan “Lazima Iwork”, translating to it must work, not knowing that barely three years later he would meekly surrender the capital county to the central government.

Governor Sakaja with Prime CS Musalia Mudavadi during the signing of the Sh80 billion Nairobi County cooperation deal at State House. [PCS]

When he took over, Sakaja heaped blame on the Nairobi Metropolitan Services, then led by Lt Gen Mohammed Badi, for allegedly siphoning billions in fishy contracts, but now a similar agency is expected to play a central role in managing the city.

Despite both President William Ruto and Governor Johnson Sakaja vehemently denying that what took place on the lawns of State House yesterday was a transfer of functions, the event, attended by officials from both levels of government, was characterised by political undertones; the President painted the picture of a struggling city under the leadership of Governor Sakaja, simultaneously touting the deal with the National Government as its imminent saviour.

“What we are augmenting today is not a transfer of functions. Let me repeat, there is no transfer of functions happening. For the avoidance of doubt, I have no interest in running the city of Nairobi. My hands are full,” said Ruto.

Critics, however, described the handover as a testament to the Governor’s inability to efficiently manage key services such as water and sewerage, roads, bridges and drainage, housing and related infrastructure, as well as solid waste management.

The Sh80 billion cooperation agreement signed with the President Ruto administration comes at a time when the capital has been grappling with challenges such as ineffective garbage collection, incessant traffic jams, insecurity, poor maintenance of county infrastructure, and increased water shortages.

So how did we get here?

The National Government’s “takeover” plan of the capital is said to have started in September last year, shortly after MCAs devised a plan to impeach Sakaja. In August, Nairobi MCAs began collecting signatures to impeach the governor following a special meeting held on August 26, 2025, where over 90 MCAs resolved to initiate the process.

For the first time, UDA and ODM MCAs were united in their bid to oust Sakaja, whom they accused of incompetence.

During the special meeting, the MCAs accused Sakaja of being out of touch with the challenges facing city residents. They claimed that there were no tangible projects three years after the governor took over.

Deputy Minority Leader Waithera Chege had noted that the governor had failed to disburse bursaries and the Ward Development Fund.

“That is why we have stalled projects, and the residents have been asking questions. The members also feel the governor is completely out of touch with the ground and MCAs,” said the Nairobi South representative.

“Three-quarters of members who call the governor cannot get him, so there is an issue of communication between the Executive and the Assembly and his failure to come out on the issue of broad-based government,” she added.

She was also concerned that the Governor had been unable to offer guidance to the city. Governor Sakaja’s reprieve would, however, come in the form of an intervention from President Ruto and ODM leader Raila Odinga, who instructed MCAs from their respective parties to halt the ouster proceedings.

Ruto met with UDA members at State House while Raila engaged with the party’s MCAs at the Jaramogi Oginga Odinga Foundation, persuading them to pause the Motion. In one of the meetings, Ward Reps are said to have explained to the President how Nairobi was in a mess despite their efforts to raise the issue with the governor.

Sakaja was also forced to appear in another meeting of ODM assembly members chaired by party leader Raila Odinga, where the county boss was given two minutes to apologise. But after the session, many MCAs claimed that they were coerced into stopping their move to send Sakaja home. The ODM side gave Sakaja 30 days to make changes in his administration.

Yesterday, Sakaja was, however, insistent that the exercise was not a transfer of functions, as happened during his predecessor’s tenure – where functions were taken over by the Nairobi Metropolitan Services, leaving the capital with a Sh16 billion pending bills hole.

“It is not a transfer, but a collaboration. With a population of close to 7 million residents, and with the city growing year on year, the equitable share from the Division of Revenue that provides resources to all the counties, as well as our own source revenue, can never be enough for the demanding needs of a capital city of the stature that we aspire to be,” reiterated Sakaja.

Yesterday, Ruto said the governor and his team will run the city of Nairobi, but as President, he has an obligation to assist the city, although the county government will allegedly retain its legal mandate.

But the development has, however, already drawn contestation from a section of MCAs who raised questions over the deal.

Under the new plan, the President promised that the National Government will pump in Sh3.7 billion towards street lighting modernisation and expansion, where 10,000 light points will be completed and an additional 40,000 light points installed.

The National Government, working with Kenya Power, will invest Sh1.5 billion in transformers and proper last-mile connections, alongside a prepaid bulk framework to lower power costs for low-income households. To transform the informal settlements, Ruto seeks a Sh3.3 billion upgrading programme covering transformers, prepaid metering and settlement lighting around footpaths, markets, schools and health facilities.

Ruto’s administration will invest Sh2.1 billion at Ng’ethu Treatment Plant to stop daily losses of approximately 50,000 cubic litres. Another Sh3 billion will go into the Gigiri-Shauri Moyo evacuation corridor to stabilise and extend supply to high-demand zones.

As part of the Nairobi River Regeneration Programme, Ruto has committed Sh9 billion to build two parallel 27km trunk sewer networks along the Nairobi River corridor, and Sh6 billion for a new sewer treatment plant.