Senate Committee Flags Illegal Revenue Remissions in Nyeri Hospitals

The Senate County Public Investment and Special Funds Committee has put Nyeri Governor Mutahi Kahiga on the spot over the management of four major health facilities in the county.

The committee, chaired by Godfrey Osotsi, met to examine the Auditor General’s report for the 2024/2025 financial year. The review focused on Nyeri County Referral Hospital, Mt. Kenya Sub-County Hospital, Mukurue-ini Sub-County Hospital, and Karatina Sub-County Hospital.

Auditor reports revealed widespread failures across the facilities, including unsupported medical revenue records, drug inventory gaps, and procurement irregularities. The hospitals were also found to have severe staff shortages and lacked functional Boards of Management to provide oversight.

The committee focused on the Facility Improvement Financing (FIF) framework, which requires revenue generated by hospitals to be retained at the source to support operations and improve service delivery. The framework allows facilities to manage funds directly instead of waiting for allocations from the county executive.

Senator Osotsi expressed concern that the 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 services.

“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 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 the explanation and directed that the Facility Improvement Financing framework be implemented immediately to ensure all hospital revenue is retained and managed at the facility level.