A number of governors are facing scrutiny over their failure to grant cities and municipalities the financial and operational autonomy required by the Constitution and the Urban Areas and Cities Act (UACA), undermining service delivery and urban development.
The Daily Nation has established that Nakuru and Eldoret, two of Kenya’s youngest cities, as well as more than 30 municipalities awarded charters over the years, remain heavily dependent on county governments, with limited control over their budgets, staffing and day-to-day operations.
The result is struggling urban centres grappling with poor waste management, chaotic physical planning, dilapidated roads and inadequate basic services, including access to clean water, despite generating a significant share of revenue collected by their respective counties.
Although the cities and municipalities were established to promote professional urban management, drawing on models such as Singapore and Kigali, many remain little more than administrative shells unable to plan or finance development projects independently.
President William Ruto (third right), Eldoret Municipality Board Chairman Julius Kitur (third right), Eldoret Municipality Manager Tito Koiyet second (left), and another official during the conferment of Eldoret Town to City Status on August 15, 2024.
Photo credit: Jared Nyataya | Nation Media Group
Their boards can deliberate and offer advice but county governments retain control over budgets, staff, resources and the implementation of key projects.
This is despite cities and municipalities generating a substantial proportion of counties’ own-source revenue, with some accounting for more than half of collections. Their dependence on county funding and development partners, including the Kenya Urban Support Programme (KUSP), has left them struggling to meet their obligations.
Article 184 of the 2010 Constitution required Parliament to enact legislation governing urban areas, including criteria for classifying cities, municipalities and towns, principles for urban management and mechanisms for public participation.
Parliament subsequently enacted the Urban Areas and Cities Act in 2011 to establish a framework for managing urban centres and bringing services closer to residents.
The law provides for cities and municipalities to manage a range of functions including physical planning and development and solid waste management.
Other functions are road maintenance, storm-water drainage, street lighting, markets, bus parks and public amenities. They are also mandated to enforce municipal by-laws, manage revenue collected within their jurisdictions, prepare budgets and employ staff.
However, 14 years into devolution many county governments have yet to give the urban entities the authority and resources needed to discharge these responsibilities.
The Senate County Public Investments and Special Funds Committee (CPIC) and Controller of Budget Margaret Nyakang’o have raised concerns over the continued restrictions on municipal autonomy, warning of non-compliance with the law.
In her latest county budget implementation report for the 2025/2026 financial year, Ms Nyakang’o cautioned that cities and municipalities continued to face significant operational and financial constraints despite being established as semi-autonomous entities under the law.
“Municipalities and cities continue to face significant constraints on operational and financial autonomy despite being established as semi-autonomous agencies under the Urban and Cities Act. Although municipal charters delegate statutory functions, execution remains largely controlled by County Treasuries and sector departments. This limits the authority of Boards and Municipal Managers under Sections 20 and 21 of the Act,” the report states.
The CoB said municipal managers should be empowered to serve as fully authorised accounting officers with control over budget execution, human resource deployment and administrative decisions.
She urged county treasuries to devolve full budget execution authority to municipal managers to enable them to implement approved work plans, strengthen financial accountability and improve service delivery.
Nakuru illustrates the challenges facing the country’s urban centres. Granted city status in December 2021, the Rift Valley hub is yet to achieve the financial and operational independence envisaged under its charter.
The city continues to rely heavily on the county government to finance development projects and day-to-day operations even though its central business district and industrial zones are major sources of county revenue.
The Controller of Budget’s report for the 2025/2026 financial year shows that Nakuru City accounted for nearly half of the Sh5.4 billion in own-source revenue collected by Nakuru County during the period.
Nakuru East and Nakuru West constituencies which make up much of the city host the central business district and industrial areas that drive collections from trade licences, parking fees, advertisements and property taxes. Naivasha, Gilgil and Molo also contribute significantly to the county’s revenue.
A nighttime aerial view of a section of Nakuru city.
Photo credit: File | Nation Media Group
Despite the city’s contribution, records indicate that it has not been granted full financial and operational autonomy.
Some city roads remain in poor condition with potholes while Nakuru continues to depend on county allocations and development partners to fund projects. The reliance on external support threatens to constrain its ability to plan and finance its growth.
Records from the county’s finance department also point to broader financial pressures. Nakuru County requires about Sh8 billion to meet salaries and other staff benefits, highlighting the strain on its finances and its dependence on revenue collected across the devolved unit.
When senators considered Nakuru’s elevation to city status in 2021, revenue growth was among the factors supporting the decision. The expectation was that the city would generate sufficient income to sustain its operations and development.
But the continued dependence on county funding has raised questions about whether its revenue base can support the responsibilities and demands that come with city status.
Eldoret, which was granted city status in 2024 laso faces similar challenges.
During the 2025/2026 financial year, Eldoret City generated more than half of the Sh1.54 billion in own-source revenue collected by Uasin Gishu County according to the figures cited in county records.
Reports by the Auditor-General and the Controller of Budget indicate that the city continues to grapple with inadequate funding for urban services including sewerage expansion, drainage improvements and solid waste collection.
The challenges have prompted concern among senators who cite underfunding, limited financial autonomy and county executives’ continued control over municipal assets as barriers to urban development.
A view of Eldoret City in Uasin Gishu County on June 24, 2026.
Photo credit: Jared Nyataya | Nation Media Group
The Daily Nation has established that concerns over losing control of revenue and political influence are among the reasons some governors have resisted granting cities and municipalities full autonomy.
According to governance experts and a report by the Senate County Public Investments and Special Funds Committee, most of the 47 counties have yet to fully implement the 2011 Act, partly because of concerns that empowering urban entities could dilute county executives’ authority.
The committee says counties have either partially or completely failed to comply with the law, preventing cities and municipalities awarded charters from exercising the autonomy envisaged under the legislation.
Governance expert David Ngugi says some governors are reluctant to relinquish control over the substantial revenue generated in urban centres or the political influence that comes with managing their operations.
“Granting financial autonomy means transferring the collection and the management of millions to a board. Most governors don't want to lose grip of the money. Most governors also want to continue having power and control of operations and activities in the cities and municipalities. A functional municipality will mean another centre of power,” Mr Ngugi said.
Migori Senator Eddy Oketch, however, argues that the law is clear on the relationship between county governments and municipalities.
“The relationship between a county and a municipality does not create another government but an agency. Governors are misreading the Act and think they are being forced to create parallel governments,” he said.
The Senate committee says it is considering proposals to amend the Urban Areas and Cities Act to allow municipalities to retain a portion of the revenue they collect to meet their operational costs.
Such a change, the committee argues, could help address funding constraints that have left urban entities unable to discharge their responsibilities effectively.
Records from the Auditor-General and the Controller of Budget identify municipalities in several counties including Vihiga, Bungoma, Busia, Tana River, Mombasa, Kwale, Tharaka Nithi, Lamu, Kisii, Trans Nzoia, Kakamega, Nyandarua, Murang’a and Embu, as facing similar difficulties.
In Vihiga, Governor Wilbur Ottichilo awarded charters to Luanda and Kaimosi municipalities but the county government continues to manage the two entities.
In Kwale, the municipalities of Kwale, Diani, Kinango and Lungalunga were granted charters more than five years ago but remain dependent on the county government.
Kitale Municipality in Trans Nzoia County also remains under the control of Governor George Natembeya’s administration while Meru Municipality and Kapenguria Municipality in West Pokot face similar constraints.
In these cases, county governments continue to prepare and control municipal budgets while retaining responsibility for functions that the law envisages should be managed by the urban entities themselves.
In Kajiado County, the municipalities of Kitengela, Kajiado and Ngong have struggled with waste management, disorganised physical planning and inadequate basic services, including access to clean water, despite their importance to local revenue collection.
