Counties demand increased budget as Health Ministry shifts UHC payroll burden

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Counties demand increased budget as Health Ministry shifts UHC payroll burden

The County governments are resisting the national government’s directive to transfer Universal Health Coverage (UHC) staff payrolls to counties without additional funding. Council of Governors (CoG) Health Chairperson Muthomi Njuki, also the Tharaka Nithi Governor, stated that counties lack the financial capacity to absorb over 8,700 UHC workers unless the national government increases their equitable share allocations.

The national government plans to shift the UHC staff payroll to county governments starting July 1, 2025. However, governors argue that this move is premature and lacks proper coordination and financial planning. They emphasize that counties should not be burdened with responsibilities without the necessary resources to support them, creating an unsustainable situation.

CoG Chairperson Ahmed Abdullahi criticized Health Cabinet Secretary Aden Duale for fast-tracking the transfer without ensuring that counties have adequate funds to pay salaries and gratuities. He stated, “This arrangement is not acceptable to us; they are just transferring problems to us, which we are not able to deal with.

The governors have requested a meeting with President William Ruto to discuss the financial challenges affecting county governments, particularly the shortfall in equitable revenue allocation. They highlight that despite requesting Ksh.536 billion for the 2025/2026 financial year, only Ksh.405 billion has been allocated, and the national government owes counties approximately Ksh.76 billion in delayed funds. 

The CoG urges the national government to resolve the financial and structural challenges before proceeding with the UHC staff transfer to ensure a seamless and sustainable transition.

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