The Health sector has received Sh127 billion for Affordable Healthcare provision in the 2024-25 financial year in budget estimates presented in the National Assembly Thursday by Treasury CS Njuguna Ndung’u.
The amount represents a Sh14.2 billion budgetary cut from the Sh141.2 billion the sector was allocated in the 2023-24 fiscal year.
This is the third year in a row the health sector has received budget cuts.
The Sh141.2 billion allocated in 2023-24 was a Sh5.6 billion funding cut compared to the Sh146.8 billion the sector received in the 2022-23 financial year.
The trend represents Kenya's continued habit of falling short of allocating at least 15 per cent of its budget to the health sector as per the Abuja declaration.
In the 2024-25 budget, Treasury CS Njuguna Ndung’u proposed the allocation of Sh42 billion for universal healthcare coverage (UHC).
The proposal represents a Sh23.6 billion increase to the Sh18.8 billion UHC allocated in the 2023-24 financial year.
It points to the government's determination to enhance access to medical care by all Kenyans under the envisioned Social Health Insurance Fund (SHIF).
Free maternity healthcare has received Sh2 billion, Sh3.6 billion has gone to managed equipment services while Sh861.5 million has been allocated for medical cover of orphans, the elderly and severely disabled persons.
Ndung’u said another Sh4.6 billion is for stipend and acquisition of specialised equipment for community health promoters, Sh4.1 billion for primary healthcare fund while Sh28.7 billion has been allocated to the Global Fund to HIV, Malaria, and TB treatment.
The CS told MPs that the National Treasury has allocated Sh4.6 billion for vaccines and immunizations and Sh1.1 billion for early diagnosis and management of cancer to strengthen cancer management at Kenyatta National Hospital and Kisii Level 5 hospitals
He said Sh2 billion has been set aside for emergencies, chronic and critical illness funds and Sh29.7 billion for Kenyatta National Hospital and Moi Teaching and Referral Hospitals.
“These include Sh2.4 billion for construction of KNH burns and paediatric centre,” Ndung’u said.
The CS further said Sh5.2 billion has been allocated to the Kenya Medical Supplies Agency (Kemsa), Sh2.5 billion to Kenya Medical Research Institute and Sh1 billion for procurement of family planning and reproductive health commodities.
He said Sh760 million has been allocated for procurement of equipment at the National Blood Transfusion Services.
Ndung’u added that another Sh3.7 billion has been set aside for medical interns, Sh406 million for training of health personnel while Sh8.6 billion has been allocated to the Kenya Medical Training Centre.
In the 2023-24 budget, the bulk of the funds went to the Global Fund for treatment of HIV, Malaria and TB (Sh24.8 billion).
Of the Sh63.5 billion that went towards national referral and specialised services, Kenyatta National Hospital received Sh21.6 billion while Moi Referral and Teaching Hospital got Sh12.8 billion.
The Kenya Medical Training College received Sh8.8 billion, Kenya National Hospital Burns and Paediatrics Centre (Sh2.4 billion) while Free Maternity Health Care received Sh4.1 billion.
The construction and strengthening of Cancer Centers was allocated Sh2.5 billion, Vaccines and Immunizations (Sh4.6 billion); Medical Cover for the Elderly and Severely Disabled (Sh1.7 billion) while Managed Equipment Services received Sh5.9 billion.
Ndung’u told Parliament that of the Sh3.92 trillion (22.1 per cent of GDP), Sh2,840b (15.7 per cent of GDP) will go to recurrent expenditure while development expenditure will take up Sh707.4b equivalent to 3.9 per cent of the GDP.
The CS said county governments have been allocated Sh444.5bn of which Sh400.1bn is equitable share.
Ndung’u informed the House that the budgetary allocation represents a Sh597bn (3.3% GDP) deficit, down from the Sh925bn (5.7 per cent of GDP in the 2023-24 financial year.
“Primary balance improved to a surplus of 2.3 per cent of GDP from a deficit of 0.4 per cent in the current financial year,” he said.
The CS said the government intends to service the budget with Sh333.8bn 1.8 per cent of GDP from external borrowing while Sh263.2 (1.2 per cent of GDP) will be from domestic borrowing.
Ndung’u said the borrowing is within sustainable levels as no new budget debt has been accumulated thus far.
“Public debt is expected to remain within sustainable levels on account of physical consolidation band that reflects the decline ratio of debt to GDP in present value terms over the medium term,” CS Ndung’u said.