NAIROBI, Kenya – May 6, 2025:
The Ministry of Health has officially announced that the responsibility for managing the Universal Health Coverage (UHC) staff payroll will be transferred to county governments effective July 1, 2025.
This landmark decision was communicated following a high-level consultative meeting on Tuesday between the ministry, the Council of Governors (CoG), and representatives from Kenya’s key health unions. The meeting was chaired by Health Cabinet Secretary Aden Duale and brought together leaders from the Kenya National Union of Nurses & Midwives (KNUNM), the Kenya Union of Clinical Officers (KUCO), the Kenya National Union of Medical Laboratory Officers, and the Kenya Environmental Health and Public Health Practitioners Union.
In a joint statement issued after the meeting, Medical Services Principal Secretary Dr. Ouma Oluga and CoG Chief Executive Officer Mary Mwiti confirmed the transfer plan, adding that the counties will receive corresponding budgetary support during the transition.
“The Ministry of Health shall transfer the management of UHC staff payroll to counties effective 1st July, 2025, with the attendant budget for payment of stipends under the current terms in the interim,” the statement read.
The agreement also outlines plans for additional funding to counties before the current UHC contracts expire. This financial support is intended to enable county governments to fully absorb UHC staff into permanent and pensionable positions — a move expected to enhance job security and morale among healthcare workers across the country.
Additionally, the ministry assured stakeholders that service gratuity payments will be considered once the absorption process is fully concluded.
The decision signals a significant shift in Kenya’s health sector management, further decentralizing operations in line with the principles of devolution. The transition is expected to improve efficiency, accountability, and service delivery by placing healthcare personnel management directly under county jurisdictions.
As part of the implementation, all UHC staff who are currently off duty have been directed to resume work immediately, and no later than May 7, 2025.
Universal Health Coverage (UHC) was launched as part of the government’s Big Four Agenda in 2018, aiming to ensure all Kenyans access quality and affordable health services without financial hardship. Since then, thousands of health workers have been recruited under contractual terms to support this initiative, especially in underserved and rural areas. The transition to county payroll management is seen as a critical step in institutionalizing UHC and aligning it with Kenya’s devolved governance model.
Healthcare stakeholders have largely welcomed the announcement, noting that it offers a clearer career path for contract health workers and addresses long-standing concerns over delayed stipends and employment insecurity. However, union officials emphasized the importance of timely disbursement of funds to counties to avoid disruptions in salary payments.
Dr. Oluga urged county governments to prepare for the changes and prioritize health personnel welfare. “We are confident that this transition will be seamless if all actors remain committed to dialogue, planning, and accountability,” he stated.
This move follows months of deliberations and comes amid ongoing efforts to strengthen the delivery of universal health services across the country — a key pillar of the government’s Bottom-Up Economic Transformation Agenda (BETA). The Ministry of Health says it will continue engaging stakeholders during the transition period to ensure clarity and smooth implementation.
