City Hall’s healthcare overhaul has begun to show clear results, with a new report revealing that Nairobi hospitals have fully absorbed their budgets and improved operations under recent reforms.
The Controller of Budget’s report indicates that Nairobi County collected Sh1.4 billion under the Facility Improvement Financing (FIF) arrangement, which was retained and spent at source as stipulated in the Facility Improvement Financing Act, 2023.
These collections were not included in the initial budget.
According to the report, the county’s 59 health facilities achieved a 100 per cent absorption rate of the approved Sh1.5 billion allocation, a milestone that points to stronger financial discipline and better service delivery at hospitals such as Mbagathi, Mama Lucy, Pumwani, and Mama Margaret Uhuru.
The county also processed Sh850.44 million in Social Health Insurance Fund claims, with Sh548.89 million already released to health facilities. This move, the report notes, has helped ease financial pressures in service provision, even as historical arrears from the now-defunct NHIF remain unresolved.
The report further highlights a 50.6 per cent increase in development spending to Sh4.09 billion, showing Nairobi’s push to invest more in healthcare infrastructure and services for its fast-growing population.
Governor Johnson Sakaja credited the progress to leadership reforms his administration introduced in level 5 hospitals.
“We restructured the board membership and created the position of CEO above the medical superintendent. The superintendent now deputises the CEO. Previously, level 5 hospitals were run solely by a medical superintendent," he said.
"Ever since these changes were made, there has been exceptional transformation in level 5 hospitals, with service delivery improving significantly and operations running more smoothly.”
County Health and Nutrition executive Suzanne Silantoi added that the cabinet has approved an expansion of this model to all level 4 hospitals.
Under the new structure, each facility will be led by a chief executive officer, replacing the medical superintendent system.
