Nairobi Governor Johnson Sakaja has revealed that City Hall is finalizing a debt swap deal with the national government to offset a Ksh2.7 billion liability owed in contributions.
Speaking on Friday, September 26, Sakaja explained that the arrangement would see the debt cleared through land rates and compensation for properties previously acquired by the State. He maintained the deal is part of efforts to stabilize City Hall’s finances while sustaining service delivery.
The Governor also countered a report by Controller of Budget Margaret Nyakang’o, which ranked Nairobi as the poorest county in development spending. He insisted that the city recorded Ksh13.8 billion in revenue collection and channelled Ksh4.09 billion into infrastructure and services.
Sakaja further disclosed that the county had settled over Ksh1 billion owed to workers’ pension schemes. This comes days after county employees downed their tools on September 18, citing salary delays despite an August 11 return-to-work deal.
Kenya County Government Workers Union Nairobi branch secretary Calvince Okello accused the county of breaching the agreement, noting that by September 17, workers were yet to receive July and August salaries alongside third-party deductions.
The Governor assured Nairobi residents that the financial reforms underway would restore stability and ensure timely payment of staff while protecting key services.
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