Kenya Revenue Authority (KRA) will henceforth collect the City Hall revenue after Governor Sonko handed over the county functions to the national government.
The county government staff will also be seconded to the national government in the new formation.
Devolution Cabinet Secretary and Governor Mike Sonko signed the papers in the presence of Senate Speaker Kenneth Lusaka on Tuesday in harmony with President Uhuru Kenyatta
Following the move, the county public service commission and public service board are expected to formulate all the required instruments to enable the deployment.
The county assembly of Nairobi will also receive the Deed of Transfer of Functions according to the Intergovernmental Relations Act for approval.
Lawyers had raised concerns over the implementation process of handing over the county government functions to the Devolution Ministry.
However, the gazette notice about the agreement shows that the way is still too long to go before the deal takes effect within 21 days.
Governor Sonko handed over transport services, county public works, health functions, planning and development services, ancillary and utilities services to the national government on Tuesday 25 February 2020.
Sonko has been out of the office from December 2019 after he was charged with corruption allegations linked to garbage collection tender by the county government.
Both the national and county assembly will be issued with an annual report on the implementation of the agreement, which would be reviewed after every two years.
The national government is expected to carry out a capacity assessment at the City Hall in a review that might affect the management of finances.
Part of the agreement reads, “The National Government shall prescribe and establish an institutional framework for the execution of the transferred functions.”
It further allows the national government to partner with various agencies to implement the new dispensation.
City Hall will henceforth be managed by Funds from the County Revenue Fund or Consolidated Fund.
Nevertheless, the focus would be on the utilization of the county resources to help in the accomplishment of the transferred functions.
The national government will also consult with the county government to set up spending caps for the same.
This means that the national government will be responsible for collecting the parking fees as well as other levies charged on transport operators.
President Uhuru’s government has now taken over the functions after concerns were raised that the city management had internal constraints that hindered the functioning of the county.