Moi Teaching and Referral Hospital (MTRH) is facing a financial crisis after disclosing that it has accumulated unpaid payroll obligations amounting to Kshs. 1.8 billion.
Appearing before the National Assembly’s Committee on Implementation in Eldoret on Tuesday, MTRH Chief Executive Officer Dr. Phillip Kirwa warned that the mounting salary arrears have hit staff morale and could trigger industrial unrest similar to last year’s strikes.
The hospital’s financial woes stem from delays in government disbursements and a widening budget deficit. According to Dr. Kirwa, MTRH has yet to receive Kshs. 444 million in grant arrears, while the current financial year faces a shortfall of Kshs. 1.2 billion. He noted that the facility is struggling to deliver services with outdated equipment and inadequate personnel funding.
“Unless the situation improves, we risk a repeat of industrial action, which will hurt service delivery,” Dr. Kirwa told lawmakers.Committee members expressed concern over the crisis, with Trans Nzoia MP Lilian Sioyi urging the Treasury to urgently address the payroll backlog.
“When we toured the hospital, we were impressed by the services offered, but the financial struggles behind the scenes are alarming,” she said.Committee Chairperson Raphael Wanjala directed that a meeting be convened within a month between the National Treasury, the Committee, and MTRH management to seek immediate solutions.
MTRH has called on Parliament to allocate funding that reflects its dual role as both a referral and a primary healthcare provider. It also urged for increased support to county and sub-county hospitals in its catchment area to ease pressure on its overstretched services.
The session also delved into concerns over ethnic diversity in the hospital’s workforce, with MPs questioning why 66 percent of its staff come from one community. Dr. Kirwa attributed this to historical recruitment patterns but insisted that new policies are being enforced to ensure fairness and inclusivity.
Despite these governance concerns, the hospital’s most urgent challenge remains financial survival. With nearly Kshs. 2 billion owed in salaries and arrears, Kenya’s second-largest referral facility risks a deeper crisis if Treasury funding delays persist.
