The Senate Committee on Information, Communication and Technology has commended the County Government of Nyeri for enacting a law that allows it to fund healthcare services using revenue collected from health facilities.
Speaking in Nyeri on Tuesday during a visit to assess the county’s use of the Integrated Financial Management Information System (IFMIS) and to identify challenges counties face in collecting their own-source revenue, the Committee Chair, Senator Allan Chesang, applauded Nyeri’s administration for establishing the Nyeri Health Services Fund Act.
He noted that Nyeri is the only county that has developed a system enabling it to continue supporting health operations even when delays occur in the release of exchequer funds meant for county operations.
“While many counties are experiencing problems with hospital revenues, we have seen a different system in Nyeri where the county has a Health Act allowing it to retain some funds collected in health facilities and spend them at source. This ensures that in case of exchequer delays, the county can still procure its own medical supplies,” said Chesang.
The Nyeri County Health Fund Act, which has been operational since 2021, allows the county to consolidate all revenues collected in healthcare facilities into one fund. The law further empowers the county government to utilize 80 percent of the consolidated money to finance healthcare services, while 20 percent is set aside for equitable distribution to Level II, III, and IV health facilities.
The fund was established to ensure that health facilities maintain continuous access to financial resources and are better prepared to respond to medical and public health emergencies.
“As a committee, we believe this is a very progressive step, and we encourage every county to adopt a similar system,” added Chesang.
The Committee also praised the county government for using digital platforms to enhance revenue collection. Chesang, who was accompanied by Committee Vice Chair Senator Miraj Abdillahi (Nominated), Senator Beatrice Akinyi (Nominated), and Senator Wahome Wamatinga (Nyeri), observed that Nyeri’s local revenue had grown significantly, from Sh600 million in 2018 to Sh1.45 billion currently, drawn from 54 revenue sources including parking fees and land rates.
“We have witnessed impressive growth in Nyeri’s own-source revenue collection. About five years ago, the county was collecting far less, but now it surpasses Sh1 billion. Although the county targets to reach Sh4.3 billion, the progress and commitment we have seen are commendable,” said Chesang.
Nyeri Governor Dr. Mutahi Kahiga thanked the Senate for its role in strengthening devolution and underscored the importance of collaboration between devolved units and the Senate to ensure all counties fulfill their mandates.
On matters of health, Dr. Kahiga, who also serves as the Vice Chairperson of the Council of Governors (CoG), revealed that the Council had agreed that every county must allocate at least 30 percent of its annual budget to health.
“This is because health is a devolved function, and we are closest to the people,” he stated.
Addressing the ongoing rollout of the Electronic Government Procurement (e-GP) system, Dr. Kahiga urged the national government to implement it gradually. He clarified that counties were not opposed to adopting the system but faced numerous challenges, including inadequate training and limited understanding of its functionality.
“The challenge we have is that e-GP is not working effectively. We have not heard or seen any testimonials on its success from any government ministry or department, including State House. Currently, most of our staff are not trained to use it,” he said.
Dr Kahiga recommended that the system be rolled out in phases to allow for proper integration and training of both county staff and service providers.
“It should be introduced gradually until it becomes seamless. Trying to impose it hastily will not work. Counties are independent governments and should not be patronised. That said, we must train our staff, contractors, and tenderers to ensure everyone is on board. e-GP should be given time,” he emphasized.
By Wangari Mwangi and Samuel Maina
