Senate ICT committee hails Nyeri County’s Health Fund law for sustaining services following delayed exchequer disbursements

The Senate Committee on Information, Communication and Technology (ICT) has lauded the County Government of Nyeri for enacting a progressive law that allows it to fund health services using revenue collected from local health facilities.

Speaking in Nyeri during an assessment tour on counties’ use of the Integrated Financial Management Information System (IFMIS), the committee chair, Senator Allan Chesang, praised the Nyeri Health Services Fund Act for ensuring uninterrupted healthcare delivery even when exchequer disbursements are delayed.

“While many counties face challenges with hospital revenues, Nyeri has a Health Act that allows it to retain and spend a portion of funds collected at its facilities. This ensures medical supplies and services continue without disruption,” said Chesang.

The law, operational since 2021, consolidates all health facility revenues into one fund. It permits the county to utilize 80 percent of the funds to finance health operations, while 20 percent is distributed equitably to lower-level hospitals across the county.

Senator Chesang commended Nyeri’s approach as a model of fiscal prudence, urging other counties to adopt similar frameworks. “This is a progressive step in devolved health management, one that guarantees sustainability even in tough financial times,” he said.

The committee also lauded the county’s digital transformation in revenue collection, which has boosted Nyeri’s local income from Ksh600 million in 2018 to Ksh1.45 billion today.

Nyeri Governor Dr. Mutahi Kahiga, who hosted the senators, attributed the success to prudent financial management and close collaboration between county departments. He emphasized that health remains a priority sector, noting that all counties under the Council of Governors have committed to allocating at least 30 percent of their annual budgets to health.

“As a devolved function, health directly impacts our people. We are determined to ensure no health facility is crippled by financial constraints,” said Dr. Kahiga.

However, the governor called for a phased rollout of the Electronic Government Procurement (e-GP) system, citing limited training and inadequate infrastructure at the county level.

“Counties are not against e-GP, but its implementation must be gradual. Our staff and service providers need time and training to adapt,” he said, adding that rushed implementation could disrupt service delivery.

The Senate committee, which included Vice Chair Senator Miraj Abdillahi and Senators Beatrice Akinyi and Wahome Wamatinga, pledged continued support to Nyeri and other counties in strengthening financial governance and service delivery.