This study sought to establish the influence of devolved healthcare financing on service delivery in county government hospitals in Kenya. Kenya adopted a system of devolution in 2010 and devolved some of the major national government functions, such as healthcare, to the county governments. In healthcare devolution, the national government retained the functions of policy development, technical support, capacity building, regulation, and management of national referral healthcare facilities, while the county governments heavily focused on provision of primary healthcare services. This technically meant that the national government was the policy developer while the county governments were policy implementers. The Constitution of Kenya defines the relationship between these two governments as one that should be interdependent and consultative, but is this the case on the ground? Debate concerning the influence of healthcare devolution has elicited various reactions from different scholars; however, very few empirical studies have examined the relationship between healthcare devolution and service delivery. Most of these studies have also been done in countries outside the continent of Africa, therefore making generalization of these studies difficult in the Kenyan context. This study therefore sought to contribute to the growing body of knowledge by determining the influence of devolved healthcare finance on service delivery in Kenya. It predominantly employed the positivism research philosophy and used qualitative research design. The target population of the study was 137 county government public hospitals from which a sample size of 385 respondents was selected. Data was collected using a questionnaire and an interview guide. Data was analyzed using SPSS version 27, using both descriptive statistics and statistical modeling. Data was presented in the form of figures, charts, and tables. The findings show that devolved healthcare financing positively and significantly influenced service delivery. This influence was further strengthened by the moderating variable, intergovernmental leadership. The study concludes that devolved healthcare financing influences service delivery. The study recommends that for service delivery to improve, there is need for reform, as far as devolved healthcare financing is concerned, as well as the need to enhance intergovernmental leadership. The study recommends the need for increased healthcare funding, disbursing finances from the national government to the county governments in a timely manner, enhanced financial accountability and making the budgeting process more participatory to improve service delivery.