Since the beginning of devolution of health sector in Kenya in 2013, there have been several concerns regarding heath care service delivery ineffectiveness, which have been attributed to strained ties between the national and county governments. There have been issues with service delivery and medical supply shortages in Nairobi City County's healthcare sector. This study sought to investigate how intergovernmental interactions have affected healthcare in in Nairobi City County. Specifically, the study examined how intergovernmental relations affect the financial allocation for the sector. The study was anchored on resource-based theory. A descriptive research design was employed involving a census for all the 7 administrators working at level 4 and level 5 health facilities in Nairobi City County as well as 78 employees working in the health department of Nairobi City County Government, constituted the sample population. Descriptive analysis was done using the standard deviation and the mean while inferential analysis was done using regression, F-test and ANOVA. The analyzed data was provided as frequency tables, percentages, and charts. Before the data collection, respondents were asked to provide informed consent, and anonymity and secrecy were assured to boost the response rate. The most critical relationship was between intergovernmental relations and financial resource allocation for the healthcare sector in Nairobi City County accounting to 39.4%. The findings suggested that in order to guarantee that financial resources are allocated appropriately, the national and the county government should work to enhance intergovernmental ties. This also helps in ensuring timely release of financial resources to health facilities by the national government. The study recommends that the financial allocation for healthcare should be enhanced so as to improve service delivery. There is also need to enhance own source revenue for the City County so as supplement the shareable revenue from the national government, which collectively will increase the finances available for utilisation in the healthcare sector
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