Nairobi is part of seven counties that are set to lose Ksh2.2 Billion funding from the Danish government meant for the Universal Health Coverage.
The seven counties risk losing funding after either not utilising the funds fully or failing to submit an audit report.
The Danish International Development Agency (Danida) wrote to the Council of Governors (CoG) noting that some of the seven counties have unspent cash and have not distributed the cash to hospitals.
"However, the auditors noted that the seven counties and Isiolo are not eligible for further funding.
"Isiolo County is included in the list, but if it does not fulfil the health budget allocation requirement, then it should be removed from the list of the eligible counties," read part of the letter to the CoG.
Nairobi, Kilifi and Meru failed to submit their audit information on the expenditure of the international funding.
Trans Nzoia topped in the counties with the highest amount of unused funds with Ksh486,000, Homa Bay still had Ksh115,000 in their coffers while Kwale has Ksh14,000.
The Danish government supports the devolved health sector in the form of operational support for primary health care facilities and for health systems strengthening at the county and national government levels
Despite not being part of the seven counties, Kiambu also risks losing the funding after having opening balance issues.
Garissa, Taita Taveta, Tana River, Mandera, Lamu and Mombasa still have ongoing audit reports but are eligible for the funding.
The auditors failed to complete the reports due to the counties providing insufficient information with others lacking audit reports.
The report also revealed that 40 counties are eligible for the Danish funding for July to December after fully complying.
There is a reprieve for the seven blacklisted counties should they clear their respective issues which will lead to their inclusion in for the Financial Year 2020-2021.
A deadline has been set for counties that have failed to fully disburse the funds, failure to which they will return the funds to the Royal Danish Embassy.
