Vihiga health facilities to manage own revenue after new law signed

Health facilities in Vihiga will now be able to collect, retain, and manage their own revenues after the enactment of a new law by the county government.

Governor Wilber Ottichilo assented to the Vihiga County Facilities Improvement Financing Bill, 2025, that eliminates bureaucratic bottlenecks which have long delayed access to critical funds.

The newly enacted Bill stipulates that revenue generated by health facilities will be managed through their respective bank accounts, ensuring a transparent and accountable spending process in line with the Finance and Management Act guidelines.

The funds will be directed toward essential operational expenses such as paying casual workers, settling electricity bills, purchasing medication, among other costs.

Previously, the health facilities collected the funds, which were remitted to the county government before being disbursed back through an annual budgetary process.

Governor Wilber Ottichilo described the Act a significant step toward improving healthcare service delivery, aimed at reforming the financing, governance, and accountability of public health facilities.

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“This Act is about putting money where it matters most, at the frontline of healthcare, and it empowers our hospitals and health centres to plan and spend in real time,” Governor Ottichilo said.

Under the new law, over 75 public hospitals, health centres, and dispensaries will be allowed to retain revenue from user fees, insurance reimbursements, government allocations, and donor support. These funds will be ring-fenced for operational costs, emergency purchases, and service delivery improvements.

The Act also lays out an extensive governance framework by proposing the creation of County and Sub-County Health Management Teams, Hospital Management Boards, and Facility Management Committees—each with clearly defined roles in planning, oversight, and community representation.

Speaking during the signing event, Governor Ottichilo emphasized the Act’s importance as a method of implementing Universal Health Care coverage.

Additionally, the Governor urged relevant stakeholders to collaborate effectively to increase Social Health Authority (SHA) registration from the current 25 percent, noting that reimbursement to healthcare facilities by the health insurer will depend on the number of patients they treat.

"The Bill is not classified as a money Bill under Article 114 of the Constitution, meaning it does not impose new taxation or charges on public funds. It is now for each health facility to improve its services so that it increases its own revenue," Governor Ottichilo said.

For accountability, there will be regular audits, quarterly reporting, and penalties for financial misconduct clearly outlined in the Act.

“The days of funds disappearing into opaque systems are over. We are introducing transparency, discipline, and community participation into how health funds are managed,” said County Executive Committee Member (CECM) for Health, Julius Maruja.

The new legislation repeals the Vihiga County Facilities Improvement Fund Act of 2020, which stakeholders had criticized for inefficiencies.

"This new legislation replaces the Facilities Improvement Fund Act 2020, which has been in operation for nearly five years with the primary goal of enhancing health facilities throughout the county," said Maruja.