National and county governments agree to absorb UHC workers into permanent positions

The national and county governments have agreed to absorb nearly 7,786 Universal Health Coverage (UHC) workers into permanent positions, with counties taking over responsibility for their payroll from September. The agreement was reached on Tuesday, September 1, 2026, during a special Intergovernmental Budget and Economic Council session chaired by Deputy President Kithure Kindiki in Nairobi.

The transition will be financed through the County Governments Additional Allocations for the 2026/27 financial year. Under the arrangement, the Ministry of Health will be reimbursed for salaries it paid to the workers in July and August, before county governments assume payroll responsibilities.

The agreement addresses disputes over payroll, funding and the employment status of the UHC workers. It also sets out the financial arrangement for moving the workers from the national system to county administrations.

The government allocated Sh8.6 billion for the transition after President William Ruto directed the allocation in September 2025. The funding is being used as the transfer is incorporated into intergovernmental planning.

The move followed presidential coordination summits held earlier in 2026 and was integrated into planning between the national and county governments. The agreement places the employment transition within the county administration framework while providing for the reimbursement of salaries already paid by the Ministry of Health.

County governments will therefore begin handling payroll for the workers in September, while the additional allocations for the 2026/27 financial year provide the financing mechanism for the transition. The arrangement covers the workers’ move into permanent positions and resolves the outstanding questions over which level of government will fund and employ them.