Health spending rises by Sh37b to plug donor gap

Treasury CS John Mbadi presents the 2026/27 Budget before Parliament in Nairobi, on June 11, 2026. [Elvis Ogina, Standard] 

The Health docket has been allocated an additional Sh37 billion, which is the largest increase in Kenya’s history, pushing its total budget to Sh177.5 billion.

Of the Sh175.5 billion allocation, the Department of Medical Services received Sh132.9 billion, with Public Health getting a share of Sh42.6 billion.

In the Budget Statement read on Thursday, Treasury Cabinet Secretary John Mbadi said the sector received the substantial boost to strengthen primary healthcare services.

The allocation has been applauded by health experts and stakeholders, saying it is crucial amid shrinking donor support.

Beatrice Kairu, a health economist, said the allocation is geared towards attaining Universal Health Coverage (UHC) that ensure all Kenyans receive quality healthcare regardless of their financial status.

“The Sh175.5 billion allocation is the largest health budget in Kenya’s history, reflecting a significant increase aimed at accelerating the rollout of UHC,” said Kairu.

Increased funding according to the expert is the best way forward to fill the void left by the donors.

“Increased budgetary allocation is an indication that the government is now realising declining donor funding, thus it has to support various programmes that were being funded by partners,” said Kairu.

The Primary Health Care Fund, received biggest share of Sh18 billion, a sharp increase from Sh3.8 billion in the current financial year — 2025/26.

The Fund oversees operation of dispensaries and health centres, where majority of Kenyans access care.

Allocation for UHC was also significant, from Sh6.2 billion during 2025/26, to Sh19.1 billion in the next financial year that begins on July 1.

Mbadi said 31.2 million Kenyans are now registered under the Social Health Authority, compared to about eight million under the defunct National Health Insurance Fund (NHIF), while 228 primary care centres have been established and operationalised.

“In the current financial year the government allocated Sh4 billion for settlement of outstanding NHIF pending bills and going forward we will settle the balance,” Mbadi said.

The funds have been earmarked to clear NHIF arrears owed to contracted health facilities, following a presidential directive to prioritise the settlement of claims not exceeding Sh10 million.

Outstanding claims exceeding the Sh10 million threshold will be prioritised once verified in the next budget cycle.

Medical interns

The Treasury Cabinet Secretary said 107,831 community health promoters have been recruited and trained, while 16,810 medical interns have undergone internship programmes, a move aimed at bringing health care services closer to communities.

He added that the government has activated the National Ebola Incident Management System to coordinate surveillance and response.

Mbadi also announced investment in reproductive health, including Sh500 million for family planning and the construction of a cancer centre in Kisii County.

The National Treasury also allocated Sh8.9 billion for UHC health workers.

Kenya Union of Clinical Offices Secretary-General George Gibore said UHC employees have been receiving their pay from donors.

“UHC employees are paid by donors, and the government’s allocation is an additional boost,” he said.

Funding for the Emergency Chronic and Critical Illness Fund, dropped from Sh8 billion, to Sh4 billion.

The Fund, which supports patients requiring emergency treatment, such as accident victims, as well as those suffering from chronic illnesses including cancer and kidney disease, has been allocated Sh4 billion.

At least Sh45 billion of the total health budget is geared for funding of referral hospitals, including Moi Teaching and Referral Hospital and Kenyatta National Hospital.

The facilities have been experiencing financial crisis, yet they provide specialised healthcare services.

Among services offered in the facilities include of cancer and kidney ailments.

The government also increased funding for tuberculosis (TB), HIV/Aids and malaria programmes, from Sh16 billion to Sh18.5 billion.

Most of the programmess were affected after United States Agency for International Development (USAID) exited following stop work order by US President Donald Trump in January last year.

“We were starting to see a reverse of gains made in HIV/Aids, TB and malaria treatment that had heavily been supported by USAID,” said Kairu.

Annually, for the donor funded projects the government’s Sh44 billion allocation with biggest share put in financing HIV/Aids, TB and malaria programmes.

Communicable diseases treatment has been allocated Sh4.75 million, a drop from Sh8.5 million, while Non-Communicable Diseases (NCDs), like cancer and kidney ailments treatment have seen an increased funding from Sh762 million, to Sh1.5 billion.

Healthcare facilities

Data reveals that at least 50 percent of illness recorded in healthcare facilities are NCDs, mainly cancer, diabetes, hypertension and kidney ailments.

There is a slight increase in reproductive and maternal newborn child and adolescent health budget, with an allocation of Sh5.7 billion from Sh4.7 billion.

Maternal and child health according to experts require more funding to reduce incidences of mothers and babies dying at birth.

At least 15 mothers and 92 newborns die everyday at birth.

However, allocation for immunisation has been slashed from Sh8.5 billion, to Sh4.7 billion.