Koskei Calls for Fiscal Prudence and County Empowerment to Drive National Transformation
Koskei Calls for Fiscal Prudence and County Empowerment to Drive National Transformation
MOMBASA, Kenya, October 24, 2025 — The Head of Public Service, Mr Felix Koskei, has urged County Secretaries to entrench fiscal discipline, strengthen administrative coordination and accelerate reforms that will anchor Kenya’s transformation at both national and county levels.
Speaking during the inaugural Annual Convention of County Secretaries held in Ukunda, Kwale County, Mr Koskei described counties as the backbone of Kenya’s socio-economic advancement and the most authentic expression of government by the people. The convention, held under the theme “Strengthening County Readiness and Collaboration for Sustainable National Development,” brought together County Secretaries, Principal Secretaries and senior government officials to review the state of devolution and chart a course for improved governance and service delivery.
Mr Koskei observed that devolution had repositioned governance by bringing services closer to citizens, stimulating local investment and promoting balanced regional growth. Citing data from the 2025 Kenya Competitiveness Index, he noted that counties collectively account for the entirety of national output, manage more than one third of public expenditure and generate over three quarters of new employment opportunities annually. The ten most productive counties, led by Nairobi, Nakuru and Mombasa, contribute approximately sixty per cent of the country’s total gross domestic product.
He commended ongoing initiatives such as the County Aggregation and Industrial Parks, Special Economic Zones and Export Processing Zones, which he said were positioning counties as new centres of productivity within regional and global value chains. “Each county must become a nucleus of enterprise and innovation,” he said. “We cannot industrialise Kenya from the centre. Our collective progress depends on how effectively we empower our counties to perform.”
A presentation by FCPA Stephen Masha from the Office of the Controller of Budget highlighted persistent fiscal challenges, including pending bills estimated at 176.9 billion shillings, low absorption of development budgets and weak internal controls. In response, Mr Koskei called on County Secretaries to demonstrate decisive leadership in financial management and to uphold the principles of accountability and transparency as prescribed in the Public Finance Management Act. He urged the use of digital systems such as the Integrated Financial Management Information System to enhance efficiency and to ensure that every public shilling translates into tangible benefits for citizens. “Fiscal responsibility is not a matter of compliance; it is a matter of public trust,” he remarked.
The convention also reviewed progress in the implementation of the Taifa Care Programme, Kenya’s universal health coverage framework, through a presentation by Dr Ouma Oluga, Principal Secretary for Medical Services. Dr Oluga explained that the Social Health Authority, established under recent health sector reforms, is now managing three key funds: the Primary Healthcare Fund, the Social Health Insurance Fund and the Emergency, Chronic and Critical Illness Fund. Together, these funds aim to guarantee access to quality healthcare for all Kenyans without imposing financial hardship.
He reported that more than twenty-three million Kenyans have already been registered under the Social Health Authority, with counties playing a pivotal role in enrolment, sponsorship of indigent households and payroll compliance. Forty-two counties have achieved full compliance. The Digital Health Transformation Programme has further advanced this vision, with the TaifaCare Hospital Management Information System already operational in twenty-four counties and over three hundred health facilities fully digitised. Counties such as Mombasa, Embu, Kirinyaga, Nandi and Nairobi are leading this transition towards a more transparent and efficient health system.
Mr Koskei commended these milestones, reaffirming the government’s commitment to deliver affordable and accessible healthcare to every Kenyan. He praised the decision to convert health workers previously engaged under the Universal Health Coverage initiative to permanent and pensionable terms, describing it as a measure that enhances both continuity and morale in the public health sector. “Health is the truest measure of a nation’s prosperity,” he said. “Every reform we implement must place the citizen at its centre.”
In his concluding remarks, Mr Koskei reminded County Secretaries that they constitute the administrative nerve centres of devolved governance and that their leadership is indispensable to Kenya’s progress. He called upon them to uphold the highest standards of integrity, efficiency and professional excellence. “Our task is to make devolution work for every Kenyan,” he said. “Not as a political slogan but as a lived reality. When counties flourish, the nation prospers.”
The Mombasa convention concluded with a joint commitment by the Office of the Head of Public Service, the Council of Governors and relevant national agencies to enhance county readiness for investment, entrench fiscal prudence and expedite the implementation of the Taifa Care framework. The meeting reaffirmed that collaboration between national and county governments remains central to Kenya’s aspiration for inclusive growth, effective governance and sustainable development.