Nairobi City County assembly MCAs on Tuesday approved the county government’s Sh49.27 billion spending plan, unlocking funding for roads, hospitals, school feeding, ward projects and affordable housing as the county shifts from institutional reforms to accelerated service delivery.
The approval ends a month-long budget impasse that had stalled implementation of the county's development agenda and raised concerns over delayed public services. It also clears the way for the Executive to begin implementing projects under the 2026/27 financial year.
The budget, themed Consolidating the Gains, Securing the Future, rises from Sh44.6 billion in the previous financial year to Sh49.27 billion, an increase of Sh4.67 billion.
It is the fourth budget under Nairobi Governor Johnson Sakaja's administration and focuses on completing ongoing projects while expanding investment in infrastructure, healthcare, education, environmental management, housing and revenue reforms.
Finance and Economic Planning CECM Ibrahim Auma, who read the budget before the assembly, said the spending plan was informed by public participation and prioritises road construction, flood mitigation, improved healthcare, water and sewerage infrastructure, affordable housing, environmental conservation and enhanced public service delivery.
County Executive Committee Member for Finance and Economic Planning, Mr Ibrahim Auma, presents the Nairobi City County Government's Sh49.27 billion Budget estimates for the 2026/2027 Financial Year before the Nairobi City County Assembly on July 28, 2026.
Photo credit: Wilfred Nyangaresi |Nation Media Group
He said the county was now transitioning from institutional recovery to completing projects that directly improve the lives of Nairobi residents.
"Our priority is to ensure the 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," Mr Auma said.
The county expects to finance the budget through Sh23.47 billion from the equitable share and grants, Sh20.86 billion from own-source revenue, Sh3.2 billion from the Health Facilities Improvement Fund (HFIF) and liquor licensing, and Sh1.7 billion in projected cash balances.
Development expenditure has increased to Sh14.91 billion, representing about 30 per cent of the total budget, up from Sh13.4 billion last year, while recurrent expenditure has risen from Sh31.2 billion to Sh34.36 billion.
Roads, bridges, drainage systems and street lighting remain among the county's biggest priorities, with Sh2.4 billion allocated for construction and rehabilitation works. An additional Sh2.255 billion has been earmarked for the Ward Development Programme, up from Sh2.155 billion last year, to finance community-driven projects across Nairobi's 85 wards and bridge development disparities.
Housing also features prominently in the spending plan, with the county targeting delivery of 10,000 affordable housing units through ongoing housing projects and slum upgrading initiatives in nine informal settlements as part of its urban renewal agenda.
Healthcare received one of the biggest funding increases, with allocation for construction, rehabilitation and equipping of health facilities rising from Sh849 million to Sh1.06 billion. The funds will support projects at Pumwani Maternity Hospital, Mama Lucy Kibaki Hospital, Mutuini Hospital and other county health facilities.
Funding for pharmaceutical and non-pharmaceutical supplies has also increased significantly from Sh400 million to Sh600 million in an effort to improve the availability of medicines and essential medical commodities.
Education has similarly received increased investment, with Sh900 million allocated to the Dishi Na County school feeding programme, up from Sh700 million last year. The county says the additional funding will strengthen school enrolment, improve retention and enhance learner performance.
County Executive Committee Member for Finance and Economic Planning, Ibrahim Auma (centre), carries the budget briefcase as he leads members of the County Executive Committee in a procession to the Nairobi City County Assembly on July 28, 2026, to present the Nairobi City County Government's Sh49.27 billion Budget estimates for the 2026/2027 Financial Year.
Photo credit: Wilfred Nyangaresi |Nation Media Group
Bursary funding has been maintained at Sh793 million, translating to Sh7 million for each ward to support vulnerable learners.
The budget further allocates Sh491 million for construction and rehabilitation of markets, Sh190 million for the Biashara Stimulus Programme targeting small and medium enterprises, and Sh1.4 billion for sports, youth and Early Childhood Development Education infrastructure.
Environmental management remains one of the largest beneficiaries, receiving Sh5.3 billion to strengthen waste management, sanitation, water services and implementation of the Green Nairobi Strategy.
To improve access to county services, Sh421 million has been allocated for completion of borough, sub-county and ward offices that will serve as one-stop service centres. Although lower than last year's allocation of Sh580 million, the county says the reduction reflects completion of several facilities already under construction.
The budget also outlines major governance reforms, including full operationalisation of the Nairobi City County Revenue Authority, rollout of a countywide Enterprise Resource Planning (ERP) system, expansion of e-procurement, tighter expenditure controls and continued settlement of pending bills while preventing accumulation of new ones.
Like the previous financial year, the county has maintained that it will not introduce new taxes, fees or charges, opting instead to increase collections through improved compliance, digital payment systems, enhanced land rates administration and operationalisation of a customer care centre.
The Nairobi County Assembly has been allocated Sh4.5 billion to support its legislative and oversight functions, up from Sh2.6 billion in the previous financial year.
Presenting the Budget Committee report, Budget and Appropriations Committee Chairperson Wilfred Odalo said the committee had thoroughly scrutinised the estimates to ensure available resources were directed towards sectors that would have the greatest impact on residents while complying with the Public Finance Management Act.
He said the committee deliberately prioritised infrastructure development, healthcare, education, ward projects, economic empowerment and settlement of pending bills to ensure the county delivers tangible benefits to Nairobi residents.
"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," Mr Odalo said.
Majority Leader Peter Imwatok said the spending plan demonstrates the county's commitment to completing projects initiated across all the 85 wards.
"I believe this budget is very keen on the completion of key projects in all the 85 wards," Mr Imwatok said.
Minority Leader Antony Kiragu also supported the estimates, saying the budget responds to the needs of ordinary Nairobi residents by prioritising infrastructure, healthcare and other essential public services.
Nominated MCA Joyce Muthoni, who also sits on the Budget Committee, said members had ensured the final budget addressed concerns raised by MCAs, including settlement of pending bills and strengthening support for nominated members.
She said increasing allocations towards pending bills would not only ease pressure on contractors owed by the county but also stimulate economic activity.
"The increase in funds allocated to settle pending bills will greatly assist in paying contractors who have delivered various services to the county, while ensuring steady circulation of money in the economy," Muthoni said.
She welcomed the decision to provide resources for nominated MCAs to establish constituency offices, saying it would enhance oversight and representation.
"The budget is commendable because it sets aside resources to help nominated Members of County Assembly establish their offices, enabling them to perform their duties without unnecessary challenges," she said.
Woodley MCA David Mberia said the Assembly had met the constitutional requirement on development expenditure, describing the 30 per cent allocation as a significant milestone.
"We have met the 30 per cent development spending threshold in this budget, and that is good in law," he said.
