The governor said the hospital will start offering health services without disruptions.
The hospital has also formed linkages with two hospitals in India and USA.
Currently, the hospital is attracting at least 1,200 out patients per day.
Embu Governor Martin Wambora has kicked off a process to transform the Embu Level Five Hospital into a parastatal in the next three months, in a bid to enhance service delivery.
The governor said the hospital, which is equipped to serve as a teaching and referral institution, will start offering health services without disruptions thereby increasing efficiency and service delivery to residents.
Speaking after opening the second Embu County Assembly on Tuesday, Mr Wambora said that once privatised, the facility will be recruiting medics on a two year contracts to ease process of firing underperforming staff.
The hospital already appointed former Government Pathologist Dr Moses Njue as its Chief Executive Officer, after setting up a Sh250million complex aimed at boosting medical tourism.
The hospital has also formed linkages with two hospitals in India and USA, which will see the Embu Hospital perform kidney transplant.
The governor said the facility, which is the largest in the region, would be expected to generate its own revenue to fund operations, as well as offer quality services at low cost.