The Council of Governors (CoG) has urged the swift release of Sh9.1 billion in pending debts owed to county governments by the now-defunct National Health Insurance Fund (NHIF).
CoG Chair Ahmed Abdullahi disclosed that only Sh3.8 billion of the Sh12.9 billion accrued debt by May 2024 has been paid.
“We call upon the Social Health Authority (SHA) to expedite the payment of pending claims under NHIF and SHA. This will enable timely payment to vendors and ensure effective service delivery to patients,” Abdullahi stated.
President William Ruto, addressing the issue on Sunday, pledged that Sh2.5 billion would be disbursed this week to settle debts owed to hospitals and service providers by the defunct NHIF.
This follows an earlier Sh5 billion disbursement by the government to support the roll-out of Universal Health Coverage (UHC).
“We are committed to ensuring all public health facilities are adequately funded to implement UHC effectively,” President Ruto said during a church service at Soweto Catholic Church in Embakasi East, Nairobi.
He also emphasized that the new system would ensure the availability of drugs in health facilities, with locals involved in their management.
Abdullahi called on Kenyans to continue registering for SHA, highlighting that the success of UHC depends on widespread registration.
Delay in County Fund Disbursements
The CoG Chair criticized the Controller of Budget, Margaret Nyakang’o, for delays in approving county fund withdrawals.
This comes as the National Treasury has yet to release Sh63.6 billion for county allocations for October and November 2024.
Also Read: Governors Criticize Budget Controller Over Fund Delays, Sh7 Billion Owed
Abdullahi expressed dissatisfaction, saying, “It is unacceptable for an institution meant to facilitate the process to cause delays. We call upon the Controller of Budget to stop being a bottleneck and ensure counties access their funds in a timely manner.”
He also lauded the Senate for retaining the county allocation at Sh400.117 billion in the Division of Revenue (Amendment) Bill, 2024. However, he lamented that, over five months into the 2024/25 financial year, the County Allocation of Revenue Act has yet to be assented to, delaying the equitable allocation of funds to counties.
Abdullahi criticized the National Assembly for reducing the County Equitable Share by Sh20 billion, warning that such cuts would cripple service delivery and halt county operations.
“Any reduction to the County Equitable Share will grind counties to a halt, especially since the Sh400.117 billion allocation is based on historical audited accounts,” he warned.
He also noted that if the National Treasury does not release Sh63.6 billion for October and November allocations, counties could face severe funding shortages by December 2024. This would leave them without funds from January 2025, as 50% of the allocation would have been exhausted.
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