Why Governor Abdulswamad Nassir is converting Coast General Hospital into a parastatal

Coast General Teaching and Referral Hospital. [Kelvin Karani, Standard]

In 2016, the Mombasa County Corporations Act came into force, leading to the establishment of Mombasa Investment Corporation and Mombasa Water and Sewerage Services Corporation.

If the proposal comes to pass, the hospital will join the ranks of other referral hospitals like the Kenyatta National Hospital and the Moi Teaching and Referral Hospital in Eldoret, Uasin Gishu.

"When you have your law, you stand on your own, and you're able to receive funding from the Executive. As you receive funding from the Executive, you're also entitled to be able to raise revenues," said Nassir.

"It has to be under an Act of its own. Right now, if they want to review their tariffs, it's a challenge."

The Governor said the county wage bill exceeds the acceptable percentage as set out in the Public Finance Management Act, 2012, which limits the county government's spending on salaries to 35 per cent of the total revenue.

Nassir said his administration spends about Sh497 million on salaries monthly, with staff working at the facility taking up about Sh100 million.

The Governor assured the staff that their pension and other benefits would not be affected by the proposed changes that will see the payroll transferred to the hospital.

He said that his administration would embrace dialogue to address concerns on sustainability, promotions, job security and management to boost efficiency at the referral hospital.