Nairobi Governor Johnson Sakaja has said his administration is restoring financial order in the capital by cutting down inflated debts, boosting revenue, and channelling resources into development.

Speaking on Friday, Sakaja confirmed that the county has resolved several long-standing issues that had burdened Nairobi’s finances, including disputed legal fees and pension arrears.

“We assessed all legal fees pending bills and slashed down many that were unjustifiably high. In some cases, interest had been wrongly added where none had been granted by the courts, these were corrected,” the governor explained.

One of the major issues addressed was a disputed claim of Ksh300 million with National Bank, which had been wrongly listed as a debt in the pending bills register.

Sakaja clarified that the matter is still before the courts and therefore could not be treated as part of the county’s financial obligations.

At the same time, the administration aligned contingent liabilities, particularly money owed to the national government from loans borrowed in the 1980s, strictly to the amounts acknowledged in the Transition Authority Report.

This move, Sakaja said, ensured that no inflated figures were included in the books.

Pension Schemes Paid in Full

The county has also honored commitments to its workers by paying more than Ksh1 billion in outstanding pension contributions to the Laptrust and Lapfund schemes.

“We have secured the pensions of our workers. This was a moral and legal obligation that we could not continue to ignore,” Sakaja said.

According to the governor, the measures, combined with debt reconciliation, negotiations with creditors, and arbitration, have already borne fruit.

Pending Bills and Revenue Records

Nairobi’s pending bills had dropped to Ksh86.77 billion by June 2025, surpassing the county’s initial target.

Revenue collection has also hit a new record, reaching Ksh13.8 billion, while the city was ranked among the top counties in development spending after channeling Ksh4.09 billion into infrastructure and services.

The county said timely settlement of bills has unlocked stalled projects and injected liquidity into the local economy.

Looking ahead, Sakaja revealed that Nairobi is pursuing a debt swap arrangement with the national government.

The county intends to offset the Ksh2.7 billion it owes the state against compensation for land acquired by the government as well as contributions in lieu of rates.

Smarter Debt Management

The governor summarized the county’s approach as one of “smarter debt management” with a focus on sustainability. Among the key achievements he highlighted were:

• Pending bills slashed
• Record revenues collected
• Pension schemes secured
• Development prioritized

“These steps show that Nairobi is fixing its finances and building its future,” Sakaja said.

Nairobi Governor Johnson Sakaja. PHOTO/Sakaja Channel.