Nairobi hospitals fully absorb funds, boosting services in new health reforms

This milestone reflects disciplined financial management and better service delivery at key hospitals, including Mbagathi, Mama Lucy, Pumwani, and Mama Margaret Uhuru.
Nairobi hospitals are reporting major improvements, with a new report showing full absorption of allocated funds and smoother operations following recent reforms by the County government of Nairobi.
The Controller of Budget indicates that the county collected Sh1.4 billion through the Facility Improvement Financing (FIF) scheme, fully retained and used at source in line with the Facility Improvement Financing Act, 2023.
More To Read
- Counties warned over dependence on Treasury amid untapped income streams
- Governors, MCAs spent Sh16 billion on travel in one year, says CoB Margaret Nyakang’o
- 16 counties on the spot for failing to pay staff despite receiving full Treasury funds
- Nairobi eases debt burden by cutting pending bills by Sh35 billion
- CoB flags poor utilisation of development funds in counties, says only 12 met threshold
- CoB: Billions in potential revenue lost amid weak enforcement in counties
These funds were additional to the original budget and have helped strengthen the health sector.
The report notes that all 59 county health facilities achieved 100 per cent utilisation of their approved Sh1.5 billion allocation.
This milestone reflects disciplined financial management and better service delivery at key hospitals, including Mbagathi, Mama Lucy, Pumwani, and Mama Margaret Uhuru.
The county also processed Sh850.44 million in Social Health Insurance Fund claims, releasing Sh548.89 million to facilities.
This step has eased the financial burden of running hospitals, even as outstanding balances from the former NHIF remain.
Development spending across the sector has also risen sharply, increasing by 50.6 per cent to Sh4.09 billion.
The rise demonstrates the county’s commitment to expanding infrastructure and enhancing healthcare services for Nairobi’s growing population.
Governor Johnson Sakaja attributed the improvements to leadership changes in level 5 hospitals.
“We restructured the board membership and created the position of CEO above the medical superintendent. The superintendent now deputises the CEO. Previously, level 5 hospitals were run solely by a medical superintendent," he said on Monday.
"Ever since these changes were made, there has been exceptional transformation in level 5 hospitals, with service delivery improving significantly and operations running more smoothly,” he added.
Health and Nutrition executive Suzanne Silantoi confirmed that the cabinet approved extending this leadership model to all level 4 hospitals.
Under the new structure, each level 4 facility will now be headed by a chief executive officer, replacing the former role of medical superintendent, to further enhance management and service delivery.
Top Stories Today