Nyeri Governor Mutahi Kahiga is facing intense scrutiny after allegations of mismanagement and irregularities in four county hospitals surfaced. Senators on the County Public Investment and Special Funds Committee raised red flags about missing medical supplies, unsupported revenue, and procurement gaps.
Reports indicate millions in hospital revenue are being funneled into the County Revenue Fund, while essential services remain underfunded. Lawmakers say delays in implementing the Facility Improvement Financing (FIF) framework are crippling health operations and effectively draining money meant for patient care.
Senate Probes Theft of Nyeri County Hospitals’ Funds
Governor Kahiga appeared before the Senate committee on Tuesday, February 17, to answer questions about financial gaps in Nyeri County Referral Hospital, Mt. Kenya Sub-County Hospital, Mukurue-ini Sub-County Hospital, and Karatina Sub-County Hospital. The Auditor General’s report revealed that all four hospitals faced serious challenges, including unsupported medical revenue, missing drugs in inventory, and irregular procurement practices.
Nominated Senator George Mbugua criticized the centralized control over hospital funds, highlighting how millions collected at Karatina and Mukurue-ini fail to translate into supplies for patients. “We see millions collected, yet basic supplies are missing. This centralized control is strangling our health system and denying these facilities the right to be self-sustaining,” he said.
Senators stressed that the hospitals lack functional Boards of Management, leaving critical oversight gaps. Staff shortages compound the problem, leaving facilities unable to serve patients effectively while funds disappear into county coffers.
Failure to Implement Facility Improvement Financing Undermines Hospitals
The FIF framework allows hospitals to retain revenue at the source, enabling them to manage operations independently. However, Nyeri hospitals are still remitting significant funds to the County Revenue Fund. Vihiga Senator Godfrey Osotsi warned that this practice is tantamount to siphoning money away from essential services.
“Governor, why are these hospitals still remitting revenue to the CRF instead of keeping it in their own accounts as the law demands? By not implementing the FIF, you are taking money from these facilities that should fund medicines. We are telling you: let the hospitals manage themselves,” Osotsi said.
The senators emphasized that withholding funds weakens hospitals, delays procurement of medicines, and compromises patient care. They argue that the slow adoption of the FIF framework has created opportunities for financial mismanagement and may amount to theft of Nyeri County funds.
Kahiga Defends His Administration’s Actions
In his defense, Governor Kahiga claimed the county is gradually rolling out proper accounting systems and appointing competent boards to manage hospital funds responsibly. He argued that the slow transition ensures transparency and accountability before full financial handover.
“My administration is committed to the FIF Act. We are currently ensuring that proper accounting structures and boards are robust enough to handle these funds independently before full handover. We seek to ensure accountability, not to withhold resources,” Kahiga said.
Despite these assurances, senators dismissed the explanations, arguing that delayed implementation of the FIF framework has already cost hospitals millions in lost revenue and operational inefficiency.
Auditor General’s Report Lays Bare Financial Irregularities
The Auditor General’s report paints a damning picture. Unsupported medical revenue, inventory gaps, and procurement irregularities are evident in all four hospitals. The lack of functioning management boards has left critical decisions in limbo, with county executives controlling funds that should support patient care.
The report underscores that unless the FIF framework is fully implemented, hospitals will continue to struggle with shortages of medicines, staffing gaps, and mismanaged finances. Lawmakers fear that continued delays could amount to large-scale misappropriation of public resources—a situation they describe as a potential case of theft of Nyeri County funds.
Senators called on Governor Kahiga to immediately transfer hospital revenue into local accounts, fully operationalize Boards of Management, and address the procurement and inventory gaps. They warned that failure to act could escalate the matter to formal investigations and legal scrutiny.
Governor Kahiga remains under the spotlight as the political pressure mounts. Public health experts and citizens alike are watching closely, demanding accountability and proper management of resources intended to save lives. With elections approaching and health services already stretched thin, the stakes for the governor could not be higher.
