Finance and Economic Planning CECM Ibrahim Auma presenting the budget at the county assembly on July 28, 2026./HANDOUT
The Nairobi County Assembly has approved Governor Sakaja Johnson’s Sh49.27 billion budget for the 2026/2027 financial year.
The budget increases investment across key sectors as the county shifts from institutional reforms to accelerating project completion and service delivery.
The budget, themed “Consolidating the Gains, Securing the Future,” rises from Sh44.6 billion in the previous financial year, reflecting an increase of Sh4.67 billion.
It is the fourth budget under Governor Sakaja’s administration and seeks to consolidate achievements made over the last three years while financing critical infrastructure, healthcare, education, environmental management, and revenue reforms.
Finance and Economic Planning CECM Ibrahim Auma and his team and MCAs during the presentation of the budget at the county assembly on July 28, 2026./HANDOUT
Finance and Economic Planning CECM Ibrahim Auma said the spending plan was informed by public participation and prioritises better roads, improved healthcare, flood mitigation, water and sewerage infrastructure, affordable housing, and enhanced public service delivery.
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 spending has also increased, with Sh14.91 billion, representing about 30 per cent of the budget, set aside for development projects, compared to Sh13.4 billion in the previous financial year.
Finance and Economic Planning CECM Ibrahim Auma and his team during the presentation of the budget at the county assembly on July 28, 2026./HANDOUT
Recurrent expenditure has similarly risen from Sh31.2 billion to KSh34.36 billion.
Roads, bridges, drainage, and street lighting remain among the county’s biggest priorities. While the Mobility sector has Sh2.4 billion specifically earmarked for the construction and rehabilitation of roads, bridges, stormwater drainage, and street lighting, the county will also undertake additional infrastructure works through the Sh2.255 billion Ward Development Programme, up from Sh2.155 billion last year.
The ward allocation is expected to finance community-driven projects across Nairobi’s 85 wards and reduce development disparities.
Finance and Economic Planning CECM Ibrahim Auma during the presentation of the budget at the county assembly on July 28, 2026./HANDOUT
Housing has also been prioritised under the 2026/2027 budget, with the county targeting the delivery of 10,000 housing units through affordable housing projects and slum upgrading programmes across nine informal settlements.
The initiative is aimed at improving access to decent housing, upgrading underserved neighbourhoods, and supporting the county’s broader urban renewal agenda.
Provision for pharmaceutical and non-pharmaceutical supplies has also increased significantly, from Sh400 million to Sh600 million, strengthening the county’s capacity to provide essential medicines and medical commodities.
Education continues to receive increased investment. The county has allocated Sh900 million for the Dishi Na County School Feeding Programme, up from Sh700 million last year, reinforcing one of Governor Sakaja’s flagship programmes aimed at improving school enrolment, retention, and learner performance.
While bursary funding stands at Sh793 million, translating to Sh7 million per ward, the county says the programme will continue supporting thousands of vulnerable learners across Nairobi.
Trade and economic empowerment have also received additional funding. The allocation for market construction and rehabilitation has increased from Sh450 million to Sh491 million, while Sh190 million has been earmarked for the Biashara Stimulus Programme to support small and medium-sized enterprises and expand economic opportunities.
Investment in sports, youth, and social infrastructure has grown from Sh1 billion last year to Sh1.4 billion, covering sports facilities, stadiums, and ECDE infrastructure aimed at nurturing talent and expanding learning facilities.
Environmental management remains one of the county’s largest investment areas, with Sh5.3 billion allocated to the Environment, Water and Natural Resources sector to strengthen waste management, sanitation, water services, and implementation of the Green Nairobi Strategy.
To improve access to government services, Sh421 million has been allocated to complete borough, sub-county, and ward offices that will operate as one-stop service centres. Although this is lower than last year’s Sh580 million allocation, the county says the reduction reflects the completion of several administrative facilities already under construction.
Beyond sectoral spending, the budget outlines major institutional reforms, including the full operationalisation of the Nairobi City County Revenue Authority, the rollout of a countywide Enterprise Resource Planning (ERP) system, the expansion of e-procurement, stricter expenditure controls, and continued efforts to clear pending bills while preventing the accumulation of new ones.
Like the previous financial year, the county has maintained that there will be no increase in taxes, fees, or charges, opting instead to widen the revenue base through improved compliance, digital payment systems, enhanced land rates collection, and the operationalisation of a Customer Care Centre.
The Nairobi County Assembly will receive Sh4.5 billion to support its legislative and oversight functions, an increase from Sh2.6 billion allocated in the previous financial year.
Presenting the estimates, Finance CECM Auma said the county had made difficult but necessary choices to ensure available resources were directed to projects with the greatest impact on residents.
He said the budget is designed to move Nairobi from institutional recovery to project completion, sustained economic growth, improved public services, job creation, and a more competitive and liveable capital city.
The estimates received broad support from Members of the County Assembly, who said the spending plan places greater emphasis on completing projects already initiated across the city while complying with the Public Finance Management Act.
Majority Leader Peter Imwatok welcomed the budget, saying it reflects the county’s commitment to delivering tangible development in every ward.
“I believe this budget is very keen on the completion of key projects in all the 85 wards,” said Imwatok.
Minority Leader Antony Kiragu also backed the estimates, saying they respond to the needs of ordinary Nairobi residents by prioritising infrastructure, healthcare, and other essential public services.
The Assembly Majority Whip praised the budget for complying with the Public Finance Management Act, 2012, noting that it had met the constitutional threshold for development expenditure while safeguarding investments in education.
“As I was looking at it, I have seen the ECDE allocation, and this is good to ensure that our children go to school. Further, a third of the money has gone to development,” the Whip said.
The Deputy Majority Whip, who also serves on the Budget Committee, said the committee had incorporated concerns raised by MCAs during the budget-making process, including support for ward projects and the settlement of pending bills.
“As a member of the Budget Committee, I support the report. Our offices as nominated members have been considered, the pending bills of the County Assembly have also been captured, and the Ward Development Fund has also been provided for. It is good that we shall be able to complete projects in our wards,” she said.
Woodley MCA Davidson Ngibuini (DNG) said the budget had complied with the constitutional requirement on development spending, describing the 30 per cent allocation as a significant milestone in ensuring resources are directed towards projects that directly benefit residents.
“We have met the 30 per cent development spending threshold in this budget, and that is good in law,” he said.
The bipartisan support from both Majority and Minority leaders is expected to strengthen the implementation of the county’s flagship programmes, with the administration now shifting its focus to delivering projects, improving services, and sustaining Nairobi’s economic transformation over the next financial year.
