Businessman Muli rebukes Mudavadi over Nairobi capital relocation debate

Businessman Eric Muli

Businessman Eric Muli has sparked a heated national debate after sharply disagreeing with Prime Cabinet Secretary Musalia Mudavadi’s remarks suggesting that Kenya’s capital city status cannot be moved from Nairobi.

Muli argued that the discussion about relocating the seat of government should not be dismissed, citing Machakos County’s historical significance and growing economic potential as reasons why the idea deserves serious consideration.

According to the businessman, Machakos already boasts an economy valued at approximately $4 billion, comparable to the Gross Domestic Product (GDP) of South Sudan despite lacking major natural resources such as oil.

“Machakos has a $4 billion GDP. Same as South Sudan. And we have no oil. Imagine if we made it the seat of Government and Nairobi retained its status as the country’s financial hub. It’s time to rethink how we see Machakos. Nairobi doesn’t have any space left,” Muli said.

The outspoken entrepreneur further challenged claims that relocating the capital would be impossible, pointing to Kenya’s colonial history. He noted that Machakos served as the administrative capital of British East Africa before the headquarters were later moved to Nairobi.

“The colonizers made Machakos a capital city in 1887. That’s about 140 years ago. Musalia was born in 1960 in Sabatia. There’s no way he can tell us it is impossible to move to Machakos when the mzungu had already made it a capital city 73 years before he was born,” Muli said.

His remarks have ignited discussions across political and economic circles, with supporters arguing that moving key government institutions to Machakos could ease congestion in Nairobi, spur regional development, and create a more balanced economic landscape.

However, critics maintain that relocating a national capital would require extensive constitutional, infrastructural, and financial considerations, making such a move a complex long-term undertaking.

The debate comes amid growing concerns over Nairobi’s rapid urbanization, traffic congestion, pressure on public services, and limited room for future expansion.

As the conversation gains momentum, Muli’s comments are likely to fuel renewed discussions on Kenya’s urban planning strategy and the future role of Machakos in the country’s development agenda.

Muli is an entrepreneur and the CEO of Lipa Later, a digital banking platform that facilitates seamless payment solutions for merchants.