Counties to get quicker funding, stronger health support after IBEC meeting

By | September 30, 2025

Deputy President Kithure Kindiki and Council of Governors Chairperson Ahmed Abdullahi (Wajir) and vice-chairperson Mutahi Kahiga (Nyeri) during the Intergovernmental Budget and Economic Council on September 29, 2025. PHOTO/DPCS

The Intergovernmental Budget and Economic Council (IBEC) on Monday, September 29, 2025, adopted a raft of resolutions to speed up county funding, strengthen health services, and improve fiscal management.

In a communique after its 28th ordinary session, chaired by Deputy President Kithure Kindiki at his Karen residence, IBEC approved the Budget Review and Outlook Paper for the 2025/26 financial year and directed the National Treasury to submit it to Parliament.

The Treasury was also urged to fast-track the County Governments Additional Allocations Bill currently before the National Assembly.

The Council raised concern over delays in approving county allocations and tasked the Treasury with developing alternative funding mechanisms.

It noted that counties had already received Sh66.1 billion for July and August but called for speedy disbursement of September funds.

To streamline operations, IBEC adopted guidelines on County Government Exchequer requisitions and instructed that they be shared with governors.

County finance executives were also ordered to operationalize County Assembly Funds by opening accounts and designating clerks as fund administrators as required by law.

On revenue, IBEC endorsed new standards for automating county own-source revenue and directed the Commission on Revenue Allocation to circulate them to governors for review by October 30.

On Health financing, IBEC directed the Ministry of Health and the Social Health Authority (SHA) to clear Sh10.3 billion in pending claims owed to counties, warning that delays had strained public facilities.

It further directed the creation of a structured reimbursement framework to ensure timely and predictable payments.

The Ministry of Health and SHA were instructed to distribute tablets to 1,200 primary health facilities for claims processing and to continue training health staff.

The ministry was further tasked with granting counties registration rights for health facilities to improve maternal care for adolescents under 18.

IBEC also called for expanded internet connectivity in health facilities, particularly Levels 4, 5, and 6 hospitals, with a rollout plan due by October 30, 2025.

Other resolutions included ensuring county public servants enjoy uninterrupted healthcare under SHA and directing the operationalization of 14 County Aggregation and Industrial Parks by December 31, 2025.

The Council also instructed the IBEC Secretariat to develop standard operating procedures for consultative forums ahead of future meetings.

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