Speaking during a county governance forum, Ottichilo said the current classification unfairly limits counties’ ability to demonstrate investment in critical sectors that directly improve the lives of residents.

“Funds spent on education and health should be considered development expenditure because they contribute directly to human capital development,” Ottichilo said.

The governor noted that county governments are often under pressure to meet statutory thresholds on development spending, yet significant resources devoted to improving healthcare services and supporting education are classified as recurrent expenditure.

According to Ottichilo, the existing framework fails to recognize the long-term economic and social benefits generated through investments in healthcare and education.

He argued that spending on medical personnel, healthcare programmes, vocational training and other education-related initiatives strengthens human capital and should therefore be regarded as development-oriented investments.

“Human capital is one of the most important pillars of development. When we invest in health and education, we are building the capacity of our people and creating the foundation for economic growth,” he said.

The proposal comes amid ongoing debates over county finances and the balance between recurrent and development expenditure.

Under current public finance management guidelines, counties are required to allocate a significant portion of their budgets to development projects, while expenditure on salaries, operations and service delivery is largely categorized as recurrent spending.

Ottichilo maintained that the classification should be reviewed to reflect modern development priorities especially as counties increasingly shoulder responsibilities in healthcare delivery and skills development.

The governor said a revised approach would provide a more accurate picture of how devolved units contribute to national development and could encourage greater investment in social sectors.

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Addressing a press conference on Monday at Delta House in Nairobi, Governor Abdullahi expressed deep concern over the delay in disbursement of critical health sector finances, warning that counties cannot be expected to absorb new healthcare workers without the requisite funding.

“We are calling on the National Treasury to immediately disburse the funds earmarked for healthcare. Counties cannot be forced to take up additional responsibilities, such as employment of health personnel, without the necessary budgetary support,” said Governor Abdullahi.

The statement comes in the wake of mounting pressure from the national government for counties to absorb medical interns and other healthcare workers under the Universal Health Coverage (UHC) framework.

Governors argue that the ongoing fiscal delays have left counties financially crippled, making it impossible to meet the increasing wage bill and operational demands in the health sector.

In addition to funding concerns, the CoG raised the alarm over what it described as the “systemic failure” of both the E-Procurement System and the newly launched electronic Community Health Information System (eCHIS),key platforms meant to enhance transparency and efficiency in health service delivery.

Governor Abdullahi noted that the National Government’s e-procurement platform, which counties are mandated to use for purchasing medical supplies and services, has become increasingly unreliable.

“The e-procurement system is largely dysfunctional. Counties are experiencing delays, frequent downtimes, and procurement bottlenecks that are crippling service delivery. This is untenable,” he said.

On the eCHIS, which was introduced as part of the UHC rollout, governors say the system has failed to function effectively at the grassroots level.

The platform, which was intended to digitize health data collection and improve decision-making at community level, is reportedly plagued by technical issues and inadequate training for users.

“The eCHIS system is simply not working as promised. There is poor internet connectivity in remote areas, lack of equipment, and limited capacity building for community health workers,” Governor Abdullahi emphasized

The CoG warned that the current situation could plunge counties into a full-blown health crisis if not addressed urgently.

Several county governments have already flagged difficulties in sustaining services at public health facilities due to budget constraints, delayed disbursements, and technical system failures.

Governors reaffirmed their commitment to providing quality healthcare services but insisted that devolution must be respected and supported with adequate resources and functional systems.

“We support Universal Health Coverage, but it must be implemented in a structured, consultative, and adequately funded manner. Devolution cannot succeed if counties are overburdened and underfunded,” Abdullahi added.

The CoG has requested an urgent consultative meeting with the Ministry of Health, the National Treasury, and the Office of the President to iron out the ongoing issues and find sustainable solutions for healthcare financing and system implementation.

Until then, governors say counties will not move forward with absorbing new healthcare workers without formal guarantees of funding.

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