The Senate ICT Committee has vowed to push the Social Health Authority (SHA) to release funds owed to counties following revelations of delayed remittances that have affected healthcare services across the country.

“Our first reaction as a committee, after compiling the report, will be to really push SHA until they start paying counties,” stated Chairperson Allan Chesang.

The resolution was made during the committee’s visit to the County Government of Nyeri to assess its revenue management system, on the second day of a three-day tour of Meru, Nyeri, and Isiolo counties.

During the visit, the committee lauded Nyeri for introducing a Health Fund which runs separately from the own source revenue to ensure uninterrupted healthcare services.

To operationalize the fund, the county enacted the Nyeri County Health Services Fund Act, 2021, which allows 80% of funds generated from healthcare services to be retained and 20% shared with other health facilities, especially Level 4, 3, 2, and 1 hospitals.

Senator Chesang sought clarity on how the Health Fund and own source revenue differ. In response, the county explained that while both contribute to total revenue, they are reported separately.

Governor Mutahi Kahiga said the fund is ring-fenced to prevent mixing with other county revenues. “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,” he explained.

On revenue management, the county adopted a digital system, Nyeri Pay, in April 2018 at a cost of Sh16.9 million to enhance collection and accountability. The system helped grow county revenue from Sh600 million in FY 2018/2019 to Sh1.45 billion.

However, the vendor’s contract was terminated in March 2025 after challenges emerged. This led to a legal battle between Nyeri and the vendor regarding access to the system source code, which hindered integration with IFMIS.

Despite these challenges, Governor Kahiga said the county had made significant progress in digital revenue collection. “Revenue has grown progressively, but integration challenges remain. We are in court demanding the source codes,” he said.

The county further revealed that in the FY 2024/25, it received Sh6.5 billion in equitable share from the national government. According to the Commission on Revenue Allocation (CRA), Nyeri County has a revenue potential of Sh4.3 billion.

Turning to the health sector, the governor decried delayed remittances by SHA and NHIF, revealing that SHA owes the county Sh230 million, while NHIF owes Sh289 million, which has affected hospital operations.

“We are facing double jeopardy. We are penalised 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,” said Governor Kahiga.

In response, Senator Chesang assured the governor that the committee would address the delayed remittances, terming them a national concern that must be resolved urgently.

The committee also noted that Nyeri has 54 revenue sources across ten departments and operates three bank accounts but faces challenges such as litigation, political interference, weak debt recovery, high taxes, and system fragmentation.

Senator Ogolla commended the county for ring-fencing health funds but called for more capacity building. “There must be intention to hire the right people with the right skills,” she said. Governor Kahiga noted the county had 10 ICT staff to strengthen operations.

Senator Miraj raised concerns about system continuity during power outages. The county confirmed that all sub-counties are connected to a wide-area network and have backup generators to ensure smooth operations.

Area Senator Wamatinga, who appeared as a friend of the committee, cautioned that lacking access to the source code limited system control and urged the county to include this in its legal case against the system vendor.