Health reforms initiated by the administration of Governor Johnson Sakaja are bearing fruit across the city, with hospitals now functioning better than before, a new report shows.
The report by the Controller of Budget shows Nairobi city county collected Sh1.4 billion under Facility Improvement Financing (FIF), which were fully retained and utilised at source in line with the Facility Improvement Financing Act, 2023.
The funds were not part of the initial budget.
The report further notes the county registered a major boost in the health sector through the successful rollout of the FIF framework for the year 2024-25.
According to the report, Nairobi’s 59 health facilities achieved a 100 per cent absorption rate, spending their entire approved allocation of Sh1.5 billion.
This reflects prudent financial management and a strong commitment to improving services at Mbagathi, Mama Lucy, Pumwani, Mama Margaret Uhuru, and other county hospitals.
In addition, the county successfully processed Sh850.44 million in approved Social Health Insurance Fund claims, with Sh548.89 million already disbursed to facilities—an important step in easing the financial burden of service provision.
Despite pending balances and historical arrears from the defunct NHIF, Nairobi’s hospitals continue to expand services and strengthen infrastructure, ensuring residents have better access to healthcare.
With health facilities recording improved financial performance, and overall development spending rising by 50.6 per cent to Sh4.09 billion, Nairobi is cementing its position as a county prioritising healthcare investments for its growing population.
Governor Sakaja explained that his administration introduced leadership changes at the city’s level 5 hospitals, a move that has greatly improved the management of facilities.
“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.”
Health and nutrition executive Suzanne Silantoi confirmed that the cabinet approved the extension of this management structure to all level 4 hospitals across the city.
Under the new framework, level 4 hospitals will now be headed by a chief executive officer, a role that supersedes the previous position of the medical superintendent.
