The main purpose of the study was to examine the effect of Healthcare Financing on Performance of Sub County Hospitals in Trans Nzoia County, Kenya. The study focused on the following specific objectives: To assess the effect of public health insurance scheme on Performance of Sub-County Hospitals in Trans Nzoia County, Kenya., and to examine the effect of devolved health services financing on Performance of Sub-County Hospitals in Trans Nzoia County, Kenya. The study was anchored on the Systems Theory by Kataz and Khan, and governance theory. The study targeted the 164 healthcare providers and patients of sub-county hospitals in Trans Nzoia County using census method since the target population was small and reachable. A descriptive research design was adopted with the questionnaire used as a data collection instrument which include both qualitative and quantitative data. The SPSS v26 software was used in establishing the effect of the independent variables on the dependent variable through the employment of ANOVA, regression and correlation analysis techniques in data analysis. The study findings indicated a statistically significant effect between the variables that led to the prediction of the dependent variable. The F-ratio (F=10.578) which was greater than the significance level of .05 depicted an overall regression model that was used to measure the dependent variable by the predictor variables. The results of the study will be expected to contribute towards the existing findings as well as forming a basis for future scholarly work in the field of healthcare financing on performance of the health facilities. This research will be important to the county governments, and in particular management of sub-county hospitals and in improving the scholarly literature reservoir. Keywords: [Health Care Financing, Financing Challenges, Universal Healthcare, Performance]