Wanga in the spot over 'missing' Sh700m hospitals revenue
Nyanza
By
Edwin Nyarangi
| Jun 18, 2026
Senators question Homa Bay governor Gladys Wanga on arrangement with Pension Fund to build Sh820 million county headquarters. [File]
Homa Bay Governor Gladys Wanga has been put on the spot over Sh700 million collected from hospitals in the last financial year that cannot be accounted for.
At the same time, the Senate County Public Accounts Committee also opened an inquiry into the controversial financing of the Sh820 million county headquarters, with members raising concerns over the nature of the transactions.
Wanga, who appeared before team chaired by Homa Bay Senator Moses Kajwang’, had a difficult time explaining the whereabouts of the millions collected from 24 health facilities.
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“She (Wanga) has told us they collected Sh915.94 million from patients while the Auditor General has told us the health facilities generated Sh1.61 billion,” noted Kajwang.
An official from the Auditor General told Senators that records examined during the period showed the facilities had only transferred Sh915 million.
“At the cut-off date (June 30), we realised the facilities had collected Sh1.6 billion but only Sh915 million had been transferred to the special-purpose account,” the auditor explained.
But the Governor insisted that was the amout collected.
“The facilities might be reporting in their books that amount, but the receipt may be different,” she said.
The explanation did not settle the matter though, prompting the committee to direct both the county government and the Auditor General to provide detailed explanations.
“This is a matter that requires further interrogation. These numbers must be looked at from the auditor’s statement and the facilities that collected the money,” said Kajwang.
The committee also questioned the county over alleged violations of the Facility Improvement Financing framework, which allows public health facilities to retain and utilise revenue they generate.
According to the Auditor General report, the county transferred the revenues collected by the health facilities into a special-purpose account instead of remitting the funds back to the hospitals after deducting the allowable 20 per cent.
“I would like to tell the Senate that the issue arose from a conflict between national legislation and county-level regulations governing management of health facility revenue,” claimed Wanga.
On the county headquarters, the Senators questioned a tenant purchase agreement with the County Pension Fund under which it is expected to pay approximately Sh820 million before taking ownership of the building.
The committee wondered if the arrangement did not amount to borrowing and therefore required approval under laws governing county debt.
“If I enter into a tenant purchase arrangement with the National Social Security Fund and pay interest over 15 years until I own the building, is that not a loan? If I am forced to take mortgage insurance over it, we need to define this animal we have here, is it a loan?” said Kajwang’.
Nairobi Senator Edwin Sifuna argued that the arrangement bore all the characteristics of a conventional loan, arguing that the money used to construct the building was not the county’s.
But Wanga insisted that the arrangement was not borrowing, arguing that the agreement was a lawful charge against county revenue and not a loan, She said they relied on Article 207(2)(a) allowing county governments to enact legislation permitting charges against the County Revenue Fund.
The explanation failed to convince the committee, who resolved to launch an independent inquiry and establish whether the county breached the Public Finance Management act.
The committee also raised concerns over Sh1.09 billion in pending bills, which Wanga assured her administration was committed to clearing.