City residents are bleeding cash, paying formal taxes for services they never receive and informal fees to private cartels just to survive.

In the labyrinthine alleyways of Kibra and the gated estates of Kilimani, a common grievance binds Nairobians: the double cost of living. Residents are increasingly forced to pay for public services twice—once through the Finance Act’s levies and again to private vendors who fill the vacuum left by state failure.

The social contract in the capital is fraying. While the Nairobi City County Finance Act 2025 promised improved service delivery in exchange for higher rates, the reality on the ground is a stinging indictment of administrative inefficiency.

The Water Cartel Economy

Nowhere is this pain more acute than in the water sector. Taps in many neighborhoods remain dry for weeks, forcing households to turn to private bowsers and jerrycan vendors.

• Sh500 per week: The average amount low-income households in Kibra spend on water—money that could buy food.
• Premium pricing: Vendor water costs up to 10 times the regulated tariff charged by Nairobi Water Company.
• Power surge: Rising electricity tokens are further squeezing disposable income, making pumped water a luxury.

The Squeeze on Salaries

For workers like Ms. Atieno, a factory employee earning Sh40,000, the math no longer works. After statutory deductions, rent, and the inflated cost of "private public services," nothing remains. This silent erosion of the middle class is not just an economic statistic; it is a governance crisis.

“We are funding a system that does not serve us,” notes a resident lobby group representative. Until the loop of taxation without service is broken, Nairobi’s "tax pain" will remain a volatile political powder keg.