Lead image for Why Controller of Budget rejected Sakaja’s Sh49bn ‘unrealistic’ plan.
Nairobi Governor Johnson Sakaja has suffered another setback after the Controller of Budget, Dr Margaret Nyakang’o, rejected the county budget for the 2026/27 financial year.
The budget, which was passed earlier this month following weeks of stalemate between the Members of the County Assembly and the Executive, has been returned to the county to address the grey areas.
The MCAs unanimously approved a budget of Sh49.27 billion, comprising Sh23.47 billion from the equitable share and grants, Sh20.86 billion from Own Source Revenue (OSR), Sh3.2 billion from the Health Facilities Improvement Fund and liquor licensing, and Sh1.7 billion in projected cash balances.
County Executive Committee Member for Finance and Economic Planning, Mr Ibrahim Auma, presents the Nairobi City County Government's Sh49.27 billion Budget estimates for the 2026/2027 Financial Year before the Nairobi City County Assembly on July 28, 2026.
However, in a letter dated August 19 and addressed to the Nairobi County Chief Executive Committee Member for Finance and Economic Affairs, Ibrahim Auma Nyangoya, Dr Nyakang’o asked the county to address some of the issues that had been highlighted, including the unreasonable OSR projections and the lack of sufficient measures to tackle the mounting pending bills, which stand at Sh81.1 billion.
“Own Source Revenue forecasting tools were rolled out to counties to help them forecast realistically and in tandem with their potential. Unrealistic projections present a significant risk of unfunded expenditures and hidden fiscal deficits, which may, in turn, contribute to the accumulation of trade payables,” Dr Nyakang’o said.