Nairobi County approves Ksh 49.27bn budget, boosts MSMEs, co-ops

  • Nairobi approves Ksh 49.27bn budget with no new taxes or fee hikes.
  • Ksh 190m set aside for MSMEs, alongside funding for markets and local hubs.
  • Infrastructure spending expected to support traders and strengthen Sacco growth.

Nairobi County Assembly has passed Ksh 49.27 billion budget for the 2026/27 financial year, with fresh funding directed at small traders, informal enterprises and financial cooperatives.

The assembly approved the spending plan without introducing new local taxes or fee increases. This gives small business owners and transport operators, who make up much of the membership of Nairobi’s largest Savings and Credit Cooperative Organisations (SACCOs), some breathing room on operational costs.

The Biashara Stimulus Programme receives a direct allocation of Ksh 190 million. The facility will offer soft loans, micro grants and capacity building support to small enterprises recovering from macroeconomic pressures.

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The county has also set aside Ksh 491 million to construct and upgrade modern trading markets across sub counties, up from Ksh 450 million in the previous financial year. This is meant to help informal vendors move into structured, safer commercial spaces.

To reduce transaction friction for merchants, the assembly allocated Ksh 421 million to complete sub county operational hubs. Decentralising services such as single business permits and environmental clearances is expected to lower overhead costs for micro entrepreneurs and cut processing delays.

Capital development projects take up 30 percent of the total budget, standing at Ksh 14.91 billion. Of this, Ksh 2.4 billion has been earmarked for urban mobility infrastructure, including road rehabilitation, street lighting and storm water drainage.

Better transport links are expected to boost daily inventory turnover for retail traders and lower logistics costs for urban transport operators.

On the revenue side, Nairobi aims to collect Ksh 20.86 billion in own source revenue through streamlined digital collections across land rates, parking fees and single user business permits. The county expects a further Ksh 23.47 billion from national government transfers and conditional grants.

By Benedict Aoya

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