The Senate County Public Investment and Special Funds Committee has put Nyeri Governor Mutahi Kahiga on the spot over the management of four key health facilities. The committee, chaired by Senator Godfrey Osotsi, met to interrogate the Auditor General’s report for the 2024/2025 financial year. The probe focused on Nyeri County Referral Hospital, Mt. Kenya Sub-County Hospital, Mukurue-ini Sub-County Hospital, and Karatina Sub-County Hospital.
Auditor reports revealed cross-cutting failures across these facilities. Issues included unsupported medical revenue, inventory gaps in drug stores, and procurement irregularities. The hospitals also faced severe staff shortages and lacked functional Boards of Management to provide critical oversight.
The committee’s primary focus remained on the Facility Improvement Financing (FIF) framework. Under the FIF Act, revenue generated by hospitals should be retained at the source to ensure optimal operations of public health facilities and effective service delivery. This allows hospitals to manage their own operations without waiting for the county executive.
Senator Godfrey Osotsi expressed alarm that hospitals were still remitting funds to the County Revenue Fund (CRF).
“Governor, why are these hospitals still remitting revenue to the CRF instead of keeping it in their own accounts as the law demands? By failing to implement the FIF, you are essentially drawing money from these facilities that should be used for medicines. We are telling you: let the hospitals be.”
Senator George Mbugua questioned the impact on service delivery.
“We see millions collected at Karatina and Mukurue-ini, yet basic supplies are missing. This centralized control is strangling our health system and denying these facilities the right to be self-sustaining.”
Governor Mutahi Kahiga defended the delay, citing administrative transitions.
“My administration is committed to the FIF Act. We are currently ensuring that proper accounting structures and boards are robust enough to handle these funds independently before full hand-over. We seek to ensure accountability, not to withhold resources.”
The committee rejected these excuses and issued a directive. Chair Senator Osotsi ordered that the Facility Improvement Financing be implemented immediately to ensure all hospital revenue is retained and managed at the facility level.
