Kenya Act or statute

Parliament of Kenya

Facilities Improvement Financing Act

Jurisdiction: Kenya
Structure: 29 provisions
Citation: Cap. 277
Dates: As at 24 Nov 2023

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Dates: As at 24 Nov 2023

Source attribution: Source: Kenya Law

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“This Act may be cited as the Facilities Improvement Financing Act, 2023.”

This Act may be cited as the Facilities Improvement Financing Act, 2023. Provides definitions of terms used in the Act relating to county health governance, health facilities, financing, and administrative roles. Establishes a mechanism to collect, retain and manage revenue from health services at public health facilities in Kenya. The Act applies to public health facilities from level 1 to level 5. Public health facilities must retain all monies raised or received by or on their behalf.

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PRELIMINARY - 1. Short Title

This Act may be cited as the Facilities Improvement Financing Act, 2023.

Section 1

POLICY FORMULATION, RESEARCH AND DEVELOPMENT TO IMPROVEMENT FINANCING - 8. Role of the National Government

The National Government's role includes developing policy guidelines on revenue management and governance to promote transparency and prudent use.

Section 8

MANAGEMENT AND ADMINISTRATION OF THE IMPROVEMENT FINANCING - 16. Establishment of the Health Facility Management Team

Establishes a Health Facility Management Team composed of the health facility in-charge and all section or unit heads, and states that this Team shall oversee overall management with collaboration from the Health Facility Management Committee.

Section 16

FINANCIAL PROVISIONS - 22. Expenditure of the facility improvement financing

Section 22

MISCELLANEOUS PROVISIONS - 29. County legislation

A county government may enact legislation to give further effect to this Act in that county.

Section 29

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Source record from new.kenyalaw.org · As at 24 Nov 2023

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Showing 29 of 29 provisions

Provision 24Interpretation 2Short titleSubstitution

Part I

PRELIMINARY

§ 1PRELIMINARY - 1. Short TitleShort title

This Act may be cited as the Facilities Improvement Financing Act, 2023.

Section 1. Short Title Section This Act may be cited as the Facilities Improvement Financing Act, 2023.

Section 1Verify source

§ 2PRELIMINARY - 2. InterpretationInterpretation

Provides definitions of terms used in the Act relating to county health governance, health facilities, financing, and administrative roles.

Section 2. Interpretation Section In this Act- “chief officer” means the chief officer responsible for health in a respective county; “county executive committee member” means the member of the, county executive committee responsible for health matters in a respective county; "county health facility” includes county and sub-county hospitals, health centers, dispensaries and any other health entity registered to provide health services; "director of medical services" means the county director of medical services appointed by the respective county public service board; “dispensary” means a health facility at level 2; “entity” means a county health facility declared to be a county government entity under section 5(1) of the Public Finance Management Act (Cap. 412A); “exemptions” means exemptions as defined in national policies; “expenditure committee” means a committee constituted by the chief officer for health for the purposes of receiving, interrogating and approving the plans and budgets from county and sub-county hospitals, health centers and dispensaries; “facilities improvement financing” means revenue collected, retained, planned for and used by public health facilities and units; “health center” means a health facility at level 3; “health facility committee” means the existing and currently constituted administrative arm that manages health facilities; “hospital” includes sub-county and county health facilities at levels 4 and 5 respectively; "hospital management board” means the administrative arm that manages hospitals and includes the appointed and gazetted Boards as currently constituted; “Hospital Management Team” means the executive management team of the hospitals as currently constituted; "operational and management costs” includes planned and budgeted activities by county health facilities; “public health facilities” means the whole or part of a public institution, building or place, whether for profit or not, that is operated or designed to provide in-patient or out-patient treatment, diagnostic or therapeutic interventions, nursing, rehabilitative, palliative, convalescent, preventative or other health service; "receivables” means monies raised by a county health facility, monies appropriated by a county government, conditional grants, donations and gifts; and “source of funds” means all sources of monies and receivables collected for public health facilities' improvement financing.

Section 2Verify source

§ 3PRELIMINARY - 3. Objects and purposes of this ActProvision

Establishes a mechanism to collect, retain and manage revenue from health services at public health facilities in Kenya.

Section 3. Objects and purposes of this Act Section provide for an efficient, secure and accountable mechanism for the collection, retention and management of revenue derived from health services rendered at public health facilities in Kenya;

Section 3Verify source

§ 4PRELIMINARY - 4. Application of this ActProvision

The Act applies to public health facilities from level 1 to level 5.

Section 4. Application of this Act Section This Act shall apply from level 1 to level 5 public health facilities .

Section 4Verify source

Part II

PUBLIC HEALTH FACILITIES IMPROVEMENT FINANCING

§ 5PUBLIC HEALTH FACILITIES IMPROVEMENT FINANCING - 5. Retention ofpublic health facilitiesimprovement financingSubstitution

Public health facilities must retain all monies raised or received by or on their behalf.

Section 5. Retention ofpublic health facilitiesimprovement financing Section 5(1) There shall be retention of all monies raised or received by or on behalf of all public health facilities . Section 5(2) There shall be opened a facility improvement financing account for each public health facility into which shall be paid all monies received by or on behalf of the respective public health facility. Section 5(3) Non-financial receivables and donations may be retained in whole or be re-donated to another public facility upon full disclosure as provided for in the relevant laws. Section 5(4) The income and other receivables retained by the public health facilities shall be considered as a supplement to the budgets and resources appropriated to the public health facilities by the respective county government and not a substitute.

Section 5Verify source

§ 6PUBLIC HEALTH FACILITIES IMPROVEMENT FINANCING - 6. Sources of thepublic health facilitiesimprovement financingProvision

Lists sources of public health facilities improvement financing as own-source revenues including user fees, charges and reimbursements from insurance firms or other relevant entities.

Section 6. Sources of thepublic health facilitiesimprovement financing Section own source revenues that include monies received as user fees, charges and monies paid as reimbursement for services received from insurance firms or other relevant entities;

Section 6Verify source

§ 7PUBLIC HEALTH FACILITIES IMPROVEMENT FINANCING - 7. Uses of the finances retained bypublic health facilitiesProvision

Uses of the finances retained by public health facilities support the respective public health facilities’ optimal operations for effective service delivery throughout the financial year.

Section 7. Uses of the finances retained bypublic health facilities Section support the respective public health facilities ’ optimal operations for effective service delivery throughout the financial year;

Section 7Verify source

Part III

POLICY FORMULATION, RESEARCH AND DEVELOPMENT TO IMPROVEMENT FINANCING

§ 8POLICY FORMULATION, RESEARCH AND DEVELOPMENT TO IMPROVEMENT FINANCING - 8. Role of the National GovernmentProvision

The National Government's role includes developing policy guidelines on revenue management and governance to promote transparency and prudent use.

Section 8. Role of the National Government Section developing policy guidelines, including on revenue management and governance to promote transparency and prudent use;

Section 8Verify source

Part IV

MANAGEMENT AND ADMINISTRATION OF THE IMPROVEMENT FINANCING

§ 10MANAGEMENT AND ADMINISTRATION OF THE IMPROVEMENT FINANCING - 10. Establishment of County Health Management TeamProvision

Each county must have a County Health Management Team composed of the county director of health (chairperson), the administrative officer of the department (secretary), all section or unit heads within the health department, and the medical superintendents of the county hospitals.

Section 10. Establishment of County Health Management Team Section 10(1) There is established a County Health Management Team in each county. Section 10(2)(a) the county director of health, who shall be the chairperson; Section 10(2)(b) the administrative officer of the department, who shall be the secretary to the team; Section 10(2)(c) all section or unit heads within the health department; and Section 10(2)(d) the medical superintendents of the county hospitals.

Section 10Verify source

§ 11MANAGEMENT AND ADMINISTRATION OF THE IMPROVEMENT FINANCING - 11. Functions of County Health Management TeamInterpretation

The County Health Management Team must coordinate and oversee interpretation and implementation of county health laws and national health policies, maintain standards on quality, performance, coordination and regulation, and control health and private sectors within their jurisdiction.

Section 11. Functions of County Health Management Team Section co-ordinating and overseeing the interpretation and implementation of county health laws and national health policies, including maintenance of standards on quality, performance, co-ordination and regulation, and control of all health and private sectors in their areas of jurisdiction;

Section 11Verify source

§ 12MANAGEMENT AND ADMINISTRATION OF THE IMPROVEMENT FINANCING - 12. Establishment of the Sub-County Health Management TeamProvision

Establishes a Sub-County Health Management Team for each sub-county and lists its members.

Section 12. Establishment of the Sub-County Health Management Team Section 12(1) There is established a Sub-County Health Management Team for each sub-county in a county. Section 12(2)(a) the health officer in charge of the sub-county; Section 12(2)(b) the sub-county administrative officer; Section 12(2)(c) all Unit heads within the sub-county department; Section 12(2)(d) the medical superintendent of the sub-county hospitals; and Section 12(2)(e) any other officer as the county executive committee member may, in consultation with the County Health Management Team, designate.

Section 12Verify source

§ 13MANAGEMENT AND ADMINISTRATION OF THE IMPROVEMENT FINANCING - 13. Functions of the Sub-County Health Management TeamProvision

The Sub-County Health Management Team supports health facility management teams in preparing annual and quarterly operational plans, including their respective budgets and procurement plans.

Section 13. Functions of the Sub-County Health Management Team Section support health facility management teams in preparing annual and quarterly operational plans, including their respective budgets and procurement plans;

Section 13Verify source

§ 14MANAGEMENT AND ADMINISTRATION OF THE IMPROVEMENT FINANCING - 14. TheHospital Management TeamProvision

Mentions the Hospital Management Team and the medical superintendent.

Section 14. TheHospital Management Team Section the medical superintendent;

Section 14Verify source

§ 15MANAGEMENT AND ADMINISTRATION OF THE IMPROVEMENT FINANCING - 15. Functions of theHospital Management TeamProvision

The Hospital Management Team must prepare and present the annual hospital work plan and budget.

Section 15. Functions of theHospital Management Team Section prepare and present the annual hospital work plan and budget;

Section 15Verify source

§ 16MANAGEMENT AND ADMINISTRATION OF THE IMPROVEMENT FINANCING - 16. Establishment of the Health Facility Management TeamProvision

Section 16. Establishment of the Health Facility Management Team Section 16(1) There shall be established a Health Facility Management Team which shall comprise of the health facility in-charge and all the section or unit heads. Section 16(2) The Health Facility Management Team shall oversee the overall management of the health facility with collaboration from the Health Facility Management Committee.

Section 16Verify source

§ 17MANAGEMENT AND ADMINISTRATION OF THE IMPROVEMENT FINANCING - 17. Composition of the health facility management committeeProvision

Lists who must be members of the health facility management committee (in‑charge as ex officio Secretary; Sub‑county Medical Officer or representative; village representative; nominated residents by women, youth and faith‑based forums; two representatives of vulnerable and marginalized communities, one being a person with disability).

Section 17. Composition of the health facility management committee Section 17(1)(a) the in-charge of the health facility, who shall be ex officio and the Secretary to the Committee; Section 17(1)(b) the Sub-county Medical Officer of Health or their representative; Section 17(1)(c) a village representative; Section 17(1)(d) one person, who is a resident of the area, nominated by a joint forum of women’s organizations in the area; Section 17(1)(e) one person, who is a resident of the area, nominated by a joint forum of youth organizations in the area; Section 17(1)(f) one person, who is a resident of the area, nominated by a joint forum of faith-based organizations; and Section 17(1)(g) two people representing the interest of the vulnerable and marginalized communities, one of whom shall be a person with disability. Section 17(2) The Chairperson of the Committee shall be elected from amongst the members of the Committee. Section 17(3)(a) at least one third of the total membership of the Committee shall be from the opposite gender; Section 17(3)(b) the membership includes persons from marginalized communities; and Section 17(3)(c) the interests of diverse groups in the catchment area are represented.

Section 17Verify source

§ 18MANAGEMENT AND ADMINISTRATION OF THE IMPROVEMENT FINANCING - 18. Role of the Health Facility Management committeeProvision

The Health Facility Management committee must consider and submit for approval to the chief officer the annual facility work plan and budget.

Section 18. Role of the Health Facility Management committee Section consider and submit for approval to the chief officer the annual facility work plan and budget;

Section 18Verify source

§ 19MANAGEMENT AND ADMINISTRATION OF THE IMPROVEMENT FINANCING - 19. Term and conditions of appointmentProvision

Board and Committee members must be appointed so that their term expiries fall on different dates; members are appointed for three-year terms and may be reappointed once for a further three-year term.

Section 19. Term and conditions of appointment Section 19(1) The appointments of the members to the Board and Committee in this Part shall be in such a manner that the respective expiry of their terms shall fall at different dates. Section 19(2) The members referred to in subsection (1) shall be appointed for a term of three years and shall be eligible for reappointment for one further term of three years.

Section 19Verify source

§ 9MANAGEMENT AND ADMINISTRATION OF THE IMPROVEMENT FINANCING - 9. Role of the County GovernmentsProvision

Facilitates effective collection and retention of facility improvement financing revenue by the public health facility.

Section 9. Role of the County Governments Section facilitating effective collection and retention of facility improvement financing revenue by the public health facility in accordance with this Act;

Section 9Verify source

Part V

FINANCIAL PROVISIONS

§ 20FINANCIAL PROVISIONS - 20. Bank account for the Facility Improvement FinancingProvision

Every entity must open and operate a bank account for facility improvement financing into which all monies received for that purpose are paid; hospitals must have the medical superintendent and hospital administrator as mandatory signatories; health centres and dispensaries must have the facility in-charge and sub-county accountant as mandatory signatories.

Section 20. Bank account for the Facility Improvement Financing Section 20(1) There shall be opened and operated a bank account for every entity into which all monies received by and on behalf of the entities for the facility improvement financing shall be paid into. Section 20(2) With respect to a hospital , the mandatory signatories to the bank accounts shall be the medical superintendent and the hospital administrator. Section 20(3) With respect to a health center and dispensary , the mandatory signatory to the bank account shall be the facility in-Charge and sub-county accountant.

Section 20Verify source

§ 21FINANCIAL PROVISIONS - 21. Authority to Incur ExpenditureProvision

The chief officer shall be the accounting officer; the hospital medical superintendent and facility in-charge shall receive authority to incur expenditure from the chief officer.

Section 21. Authority to Incur Expenditure Section 21(1) The chief officer shall be the accounting officer. Section 21(2) The hospital medical superintendent and facility in-charge shall receive authority to incur expenditure from the chief officer .

Section 21Verify source

§ 22FINANCIAL PROVISIONS - 22. Expenditure of the facility improvement financingProvision

Sets procedures and limits for facility improvement financing expenditures: user departments must raise vouchers; hospital or health-center accountants must verify vouchers; county entities must not spend without express authority; chief county treasury officer may appoint accountants; health facilities must limit expenditure to available funds and authority and must file quarterly returns before new authority is issued.

Section 22. Expenditure of the facility improvement financing Section 22(1) Upon issuance of authority to incur expenditure to the medical superintendent or facility in charge, the user department shall raise vouchers for payment for services or procurement of commodities. Section 22(2) The vouchers shall be verified by the respective hospital accountant, or the accountant responsible for the health center , whichever is applicable. Section 22(3) The vouchers shall be presented to the County Department for Health Accountant for confirmation that the items requested are in the vote book and thereafter approved. Section 22(4) The voucher shall revert to the medical superintendent or facility in charge for initiation of payment. Section 22(5) An integrated financial management system shall be used as the primary accounting platform for the county entities. Section 22(6) All county entities shall not expend any finances without express authority to incur expenditures. Section 22(7) The chief officer for the county treasury in consultation with the chief officer may appoint accountants for health centers and dispensaries for purposes of proper financial accounting and record keeping. Section 22(8) The expenditure incurred by the health facilities shall be on the basis of, and limited to, the available finances in the respective bank accounts and the authority to incur expenditure. Section 22(9) Health facilities shall be expected to file returns and financial accounts in the format prescribed by county legislation for the preceding quarter to the chief officer before a new authority to incur expenditure is issued.

Section 22Verify source

§ 23FINANCIAL PROVISIONS - 23. Annual reportingProvision

Submit the facility’s financial statements to the Auditor-General in accordance with the Public Audit Act (No. 34 of 2015).

Section 23. Annual reporting Section submit the facility’s financial statements to the Auditor-General in accordance with the Public Audit Act (No. 34 of 2015); and

Section 23Verify source

§ 24FINANCIAL PROVISIONS - 24. AuditProvision

Facility improvement financing shall be subjected to audits in accordance with the Public Audit Act ( No. 34 of 2015 ).

Section 24. Audit Section The facility improvement financing shall be subjected to audits in accordance with the Public Audit Act ( No. 34 of 2015 ).

Section 24Verify source

§ 25FINANCIAL PROVISIONS - 25. Overdraft and continuityProvision

The accounting officer must ensure that the facility improvement financing accounts are not overdrawn.

Section 25. Overdraft and continuity Section 25(1) The accounting officer shall ensure that the facility improvement financing accounts are not overdrawn. Section 25(2) The facility improvement financing shall not lapse with the turn of a new financial year, but any residue of finances shall be captured in the following financial year budget and annual plans and rolled over.

Section 25Verify source

§ 26FINANCIAL PROVISIONS - 26. Winding up of improvement FinancingProvision

When a health facility is closed and improvement financing is wound up, the balances must be transferred to the County Revenue Fund and a certificate sent to the accounting officer for the department of health.

Section 26. Winding up of improvement Financing Section In circumstances when a health facility is closed and the improvement financing is to be wound up, the balances shall be swept to the County Revenue Fund and a certificate sent to the accounting, officer for the department of health.

Section 26Verify source

Part VI

MISCELLANEOUS PROVISIONS

§ 27MISCELLANEOUS PROVISIONS - 27. Transitional provisionsProvision

Section 27: All members of the current Hospital Management Board or Committees and Health Facility Committees must continue to operate under existing regulations until the expiry of their respective terms.

Section 27. Transitional provisions Section All members of the current Hospital Management Board or Committees and Health Facility Committees shall continue to operate as per existing regulations up to the expiry of their respective terms.

Section 27Verify source

§ 28MISCELLANEOUS PROVISIONS - 28. PenaltiesOffence

Penalties in the Public Finance Management Act (No. 12 of 2012), the Public Procurement and Asset Disposal Act (No. 33 of 2015) and other written laws on misuse, misappropriation and other deviations shall apply.

Section 28. Penalties Section The penalties stipulated in the Public Finance Management Act ( No. 12 of 2012 ) and the Public Procurement and Asset Disposal Act ( No. 33 of 2015 ) and other written laws on misuse, misappropriation and other deviations shall apply.

Section 28Verify source

§ 29MISCELLANEOUS PROVISIONS - 29. County legislationProvision

A county government may enact legislation to give further effect to this Act in that county.

Section 29. County legislation Section A county government may enact legislation to give further effect to the provisions of this Act in the respective county.

Section 29Verify source

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