Big win as Health sector secures Sh177 billion allocation

Treasury CS John Mbadi during the Budget Highlights For the Financial year 2026/2027 at parliament on June 11, 2026. [Boniface Okendo, Standard]

The government has allocated Sh177.2 billion to the health sector in the 2026/27 budget, making it the among the top sector allocations in the Sh4.8 trillion plan.

The allocation represents an increase of about Sh37.5 billion from the current financial year.

According to the Treasury CS, the funding aims to improve healthcare by advancing Universal Health Coverage (UHC) and strengthening service delivery.

“Equitable access to quality health services is essential for human capital development, productivity and poverty reduction. Towards this end, Treasury has proposed Sh177.2 billion to the health sector in the 2026/27 financial year to strengthen service delivery across the country,” said Mbadi.

In the proposed budget, Sh18.5 billion has been earmarked for the Global Fund (HIV, malaria and TB) to help reduce the burden of communicable diseases and advance immunisation programmes.

A significant portion has also been directed towards salaries for Universal Health Coverage (UHC) staff, at Sh8.9 billion, with Sh3 billion allocated to the emergency and chronic illnesses fund and Sh1 million for the construction of a cancer centre at Kisii Level 5 Hospital.

Medical interns will receive Sh9.3 billion, KMTC Sh10.9 billion, and Sh3.6 billion for Community Health Promoters in FY26/27, in efforts to build workforce capacity, Treasury CS Mbadi said.

To further boost primary care, Sh19.1 billion has been allocated to the Primary Healthcare Fund to finance essential frontline health services.

Vaccination programmes have received Sh6.4 billion to protect communities and children while reducing health-related economic shocks.

On cancer care, Sh300 million has been allocated to strengthen cancer management at Kenyatta National Hospital, while Sh150 million will go towards the expansion of the cancer centre at the Kenyatta University Teaching and Referral Hospital.

For tertiary healthcare services, Sh45.3 billion has been set aside for referral hospitals to enhance specialised care across the country.

The National Treasury proposes a targeted allocation of Sh45.3 billion for the referral hospitals.#BudgetDay2026 pic.twitter.com/uaNSYvTwOA — KTN News (@KTNNewsKE) June 11, 2026

The Kenya Medical Supplies Authority (KEMSA) has been allocated Sh20.9 billion to improve the supply and distribution of essential medicines and health commodities.
The Kenya Medical Research Institute (KEMRI) will receive Sh3.1 billion to support medical research programmes.

Reproductive, Maternal, Newborn, Child and Adolescent Health programmes have been allocated Sh3.8 billion, while Sh4.8 billion has been set aside for the Building Resilient and Responsive Health System Project.