Nairobi: Investment consultant Sylvanus Abungu has defended Nairobi County’s decision to enter into a cooperation agreement with the National Government, describing it as a strategic move to accelerate development in the capital.
According to Kenya News Agency, Abungu, who is also the chair of the Kenya National Chamber of Commerce and Industry (KNCCI) Busia chapter, emphasized that structured collaboration between the two levels of government is a key pillar of economic growth. This collaboration is particularly beneficial through government-to-government funding arrangements that help unlock large-scale projects.
He highlighted that Nairobi remains the highest revenue-generating county in Kenya, collecting approximately Sh13.5 billion in Own-Source Revenue (OSR) in the 2024/25 financial year. Nonetheless, he pointed out that this amount is insufficient to finance the scale of flagship infrastructure and service delivery projects required in the city.
Abungu explained that flagship projects require substantial funding and are typically undertaken in phases. Despite conditional grants, equitable share, and local revenue, the demands remain substantial. He further elaborated that the estimated Sh80 billion cooperation framework between the National Government and Nairobi County will significantly bolster the county’s financial capacity. He noted that the absence of structured cooperation agreements in the past has led to project delays, incomplete initiatives, and missed opportunities to fully benefit residents.
Abungu also encouraged other county governments to pursue similar partnerships to accelerate development, while exploring alternative financing models such as donor funding and Public-Private Partnerships (PPPs).
He was speaking in Amagoro during a meeting with over 1,000 women as he rolled out an economic empowerment initiative spearheaded by Stanbic Bank. The programme, dubbed ‘Dada Mashinani,’ aims to enhance women’s financial inclusion by providing access to affordable credit and business support services aimed at strengthening grassroots enterprises.
Abungu revealed that the initiative targets to onboard at least 20,000 women in Busia County by the end of March, underscoring the role of financial empowerment in driving local economic growth.
