Cash row stalls Ruto directive on health workers’ jobs

Governors had turned down the ministry’s proposal for one-year funding, maintaining that absorption must be based on guaranteed resources.
A fresh standoff has emerged between President William Ruto and governors over the fate of more than 7,400 Universal Health Coverage (UHC) workers, after county chiefs rejected the President’s directive requiring them to immediately place the staff on permanent and pensionable terms.
Barely a day after Ruto issued the order in Mombasa, governors insisted that counties lack the financial capacity to absorb the workers unless the national government releases Sh7.7 billion to cover the transition. They further demanded Sh9.4 billion to settle gratuity arrears for staff whose contracts have already expired.
“What the President is saying is not possible. We don’t have the money to absorb all of them. Unless they give us money, it will be difficult to implement his order,” one governor said.
The governors plan to hold a meeting next week to deliberate on the directive, which has sparked confusion, coming only days after they also dismissed a similar order from the Ministry of Health.
Previously, the ministry and the Council of Governors (CoG) had reached a compromise to retain the workers on the Salaries and Remuneration Commission (SRC) scale until June 2026, when the positions would be integrated into the national budget.
Governors had turned down the ministry’s proposal for one-year funding, maintaining that absorption must be based on guaranteed resources.
“The ministry cannot alter the contracts of UHC staff without involving county governments,” CoG chair Ahmed Abdullahi said. “The council will only accede to variations if the equitable share of revenue is increased to cater for them.”
Ruto, however, overturned the arrangement during his Mombasa visit, where he personally issued employment letters to some of the workers. He directed both national and county governments to fast-track absorption.
“Hawa wafanyikazi tunataka kuwatoa kutoka kwa kandarasi tuwafanye permanent and pensionable. Mimi nauliza counties hawa wafanyi kazi kuanzia mwezi huu wa tisa tuwaweke permanent and pensionable because we have the resources,” Ruto said.
Translation: We want to take these workers off contracts and place them on permanent and pensionable terms. I am asking counties to make them permanent and pensionable starting this September because we have the resources.
The President also expressed displeasure with counties that have failed to pay stipends to Community Health Promoters, demanding that arrears be cleared within a week.
He praised Mombasa for leading in Social Health Authority (SHA) registration at 69 per cent, noting that the county has already received more than Sh1.5 billion in SHA funding.
To calm the dispute, the Health Ministry and CoG had earlier agreed on a temporary solution in which the ministry would pay the UHC staff on improved terms for 10 months starting September, before handing over the responsibility to counties in the next financial year once additional funds are factored in.
“In principle, the money we have this financial year is for county staff. But from September, they will be paid under SRC guidelines. Sh7.7 billion will be transferred and factored into the Division of Revenue Bill,” Health CS Aden Duale said.
Meanwhile, pressure continues to mount on Duale in Parliament over persistent delays in the rollout of the Social Health Authority.