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Under the new arrangement, money placed in a post-retirement medical fund will remain available for healthcare-related needs. Members can use it to obtain insurance cover, settle medical bills or recover money already spent on treatment.
Treasury figures show that most of the money released in July was meant for day-to-day operations. Sh39.7 billion went towards recurrent spending, including salaries and administrative expenses, while Sh4.9 billion was set aside for development.
Speaking on Monday during the 30th Intergovernmental Budget and Economic Council (IBEC) Ordinary Session at the Official Residence in Nairobi, Kindiki said the timely payments would allow counties to continue funding services without facing disruptions caused by delayed funds.
Abdullahi said counties were facing challenges linked to the transition into the new financial year, including issues with IFMIS, e-GP and the integration between IFMIS and Kenya Revenue Authority systems.
Speaking during an interview with Radio Generation on Friday, Sankok said the size of a country’s debt should not be considered in isolation, arguing that a stronger economy could sustain a larger debt burden than a smaller economy
The accused appeared before Anti-Corruption Magistrate Rose Ndobi in Nairobi, where they denied charges including abuse of office, unlawful acquisition of public property, uttering a false document, financial misconduct, acquisition of proceeds of crime and multiple counts of money laundering.
The national government has also continued to provide specific additional allocations to counties for health-related programmes. In 2026/27, Treasury has proposed Sh3.235 billion for community health promoters and Sh1.759 billion towards outstanding basic salary arrears for health workers
The ruling followed a legal battle that began after Kenya Power switched off electricity to several Nairobi County offices on February 14, 2025, citing unpaid bills. The electricity was later restored after Head of Public Service Felix Koskei stepped in to mediate the dispute.
The DPP said an independent and thorough review of the inquiry file established sufficient evidence to charge the suspects with several offences.
According to the EACC, Sh1.569 billion was fraudulently disbursed from the National Treasury Development Account to the programme and subsequently channelled to 23 private entities, 15 business names and eight companies.
Gavi Chief Executive Officer Dr Sania Nishtar welcomed the move, saying the funding would strengthen vaccination efforts and help countries respond to disease outbreaks.
According to PS Mwangi, the transition from the initial design stage to an active construction contract brought in several expenses that had not been included in the first figure.