The Intergovernmental Budget and Economic Council (IBEC) has taken decisive steps to resolve persistent delays in county funding and health reimbursements. The resolutions were passed during the Council’s 28th session, chaired by Deputy President Kithure Kindiki at his Karen residence on Monday.
In a joint statement, IBEC approved the Budget Review and Outlook Paper (BROP) for 2025/26 and directed the National Treasury to submit it to Parliament. The Council also urged the Treasury to fast-track the County Governments Additional Allocations Bill, noting that delays in approvals have disrupted service delivery at the county level.
So far, Sh66.1 billion has been disbursed as equitable share for July and August 2025. However, IBEC called for faster release of September funds to ease operational challenges faced by counties. To improve efficiency, the Council received guidelines on County Government Exchequer requisitions and directed counties to operationalize Assembly Funds by opening accounts and appointing clerks as administrators.
Health Financing at the Core
Health financing was a key priority in the meeting. IBEC directed the Ministry of Health and Social Health Authority (SHA) to settle Sh10.3 billion in pending reimbursements owed to counties. The Council warned that delays have strained public health facilities and risked disrupting essential services.
To prevent future backlogs, IBEC called for a structured reimbursement framework and timely release of claims. The Ministry of Health and SHA were also ordered to distribute tablets to 1,200 primary health facilities for improved claims processing and to train county health officials.
Additionally, the Health Ministry will grant counties registration rights for health facilities, particularly to enhance maternal care access for adolescents under 18. Internet connectivity will also be expanded across Levels 4, 5, and 6 hospitals, with a rollout plan due by October 30, 2025.
Development and Industrialization
Beyond health, IBEC emphasized economic growth by instructing governors of 14 priority County Aggregation and Industrial Parks (CAIPs) to operationalize them by December 31, 2025.
The Council further tasked the IBEC Secretariat and Council of Governors with creating standard procedures for sector consultative forums ahead of future meetings.
