The Council of Governors (COG) on Monday, November 25, launched a model Financial Procedure Manual for county health spending set to track revenue spent and generated from health facilities in all 47 counties.
The tool is designed to enhance financial accountability in counties and improve resource management in health facilities.
According to a statement by the governors, it also aligns with the Facility Improvement Financing (FIF) Act 2023, which empowers counties to collect, retain, and utilize funds directly at health facilities.
“The Facilities Improvement Financing (FIF) Act provides for full financial autonomy of health spending units while the Social Health Insurance Act provides financing mechanisms for those spending units,” COG Chair Ahmed Abdullahi stated in his address.
Speaking during the event, Medical Services Principal Secretary Mary Muthoni emphasised that the system will also bolster ongoing efforts in advancing the Universal Health Coverage (UHC) scheme.
“This Financial Procedure Manual is a game-changer in how counties manage healthcare resources. It will ensure every shilling is accounted for and directed towards improving healthcare services at the grassroots,” she said.
It is expected to complement ongoing efforts under the Social Health Insurance Act 2023, including strengthening human resources for health and expanding access to primary healthcare.
It will enable streamlined service delivery, transparent procurement processes, and strengthened governance. Ultimately, it aims to transform healthcare financing and administration in Kenya.
Since the devolvement of health following the promulgation of the 2010 Constitution, county governments have been responsible for governing all things health but there has not been an established governance structure.
This disparity has led to various inefficiencies across the health sector in the country especially since hospitals are currently being audited as independent spending units.
“We are also cognizant that hospitals are now being audited as independent spending units. That means those units must have systems and capacity to manage resources and deliver healthcare services,” Governor Abdullahi stated.
This means that the responsibility of managing and delivering healthcare is vested in the health facility in charge.
