Senate vows to push SHA to pay counties remittances
The Senate ICT Committee has pledged to push the Social Health Authority (SHA) to release funds owed to counties, following revelations that delayed remittances have disrupted healthcare services nationwide.
In a statement on Tuesday, October 14, 2025, the Senate announced that the Committee Chairperson, Senator Allan Chesang, stated that the Senate would take firm action once the committee’s report is finalised.
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“Our first reaction as a committee, after compiling the report, will be to really push SHA until they start paying counties,” Chesang stated.
The statement revealed that the committee resolved to review the County Government of Nyeri’s revenue management system during a visit, as part of a three-day tour covering Meru, Nyeri, and Isiolo counties.
During the visit, the senators commended Nyeri County for establishing a Health Fund separate from the county’s own-source revenue, ensuring the continuous provision of healthcare services.
The fund is operational under the Nyeri County Health Services Fund Act, 2021, which allows 80% of revenue collected from health services to remain within the facilities, while 20% is distributed to lower-level hospitals.
Senator Chesang sought clarity on how the Health Fund differs from general county revenue. Governor Mutahi Kahiga explained that the fund is ring-fenced to prevent diversion of health resources.
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“The money collected under the Health Fund goes to one source to avoid delays, and a committee chaired by the head of the Level 5 Hospital oversees it. This system was established before SHA,” said Kahiga.
Regarding revenue collection, the governor stated that Nyeri adopted a digital system, Nyeri Pay, in April 2018 at a cost of Ksh16.9 million to enhance accountability and efficiency. The platform helped raise the county’s revenue from Ksh600 million in FY 2018/2019 to Ksh1.45 billion.
However, the county terminated its contract with the vendor in March 2025 following operational challenges, sparking a legal dispute over access to the system’s source code, an issue that has hindered integration with the Integrated Financial Management Information System (IFMIS).
“Revenue has grown progressively, but integration challenges remain. We are in court demanding the source codes,” the governor said.
Nyeri County
Nyeri County received Ksh6.5 billion in equitable share from the national government in FY 2024/25. According to the Commission on Revenue Allocation (CRA), the county has the potential to raise KSh4.3 billion in local revenue.
Governor Kahiga decried the delayed remittances by SHA and the National Health Insurance Fund (NHIF), saying the two institutions owe the county a combined Ksh519 million, Ksh230 million from SHA and Ksh289 million from NHIF.
“We are facing double jeopardy. We are penalized as a county while our employees are still being deducted. Treasury must allow waivers so that staff can access medical services even when funds are delayed,” he said.
Senator Chesang assured the county leadership that the Senate will take up the issue as a matter of urgency.
“This is a national concern that must be resolved immediately to safeguard healthcare delivery,” he said.
The committee also noted that Nyeri has 54 revenue sources across ten departments and operates three main bank accounts. However, the county continues to face challenges, including litigation, political interference, weak debt recovery, high taxes, and system fragmentation.
Senator Ogolla commended the county for ring-fencing health funds but emphasized the need for skilled personnel.
“There must be intention to hire the right people with the right skills,” she said.
Governor Kahiga noted that the county currently has 10 ICT officers to strengthen digital operations. Meanwhile, Senator Miraj raised concerns about service continuity during power outages, but county officials assured that all sub-counties are connected to a wide-area network with backup generators.
Nyeri Senator Wahome Wamatinga, appearing as a friend of the committee, cautioned the county against losing control of its digital systems.
“Lack of access to the source code limits system control. The county must include this in its legal case against the vendor,” he advised.
