Treasury Cabinet Secretary John Mbadi presenting the 2026/27 Budget in Parliament on June 11, 2026/SCREENGRABThe health sector has emerged among the biggest beneficiaries in the 2026/27 Budget after the government increased its allocation to Sh177.2 billion, up from about Sh138.1 billion in the 2025/26 financial year.
Treasury Cabinet Secretary John Mbadi said the funding will support the government's drive towards Universal Health Coverage (UHC), strengthen healthcare delivery and expand access to essential medical services across the country.
Presenting the 2026/27 Budget in Parliament on Thursday, Mbadi said equitable access to quality healthcare remains a key pillar of the government's social and economic agenda.
“Universal Health Coverage is central to a better social contract. Equitable access to quality health services is essential for human productivity,” Mbadi said.
The allocation represents an increase of about Sh39 billion from the previous financial year.
Among the key allocations is Sh19.1 billion for the Primary Health Care Fund to finance frontline health services, while Sh8.6 billion has been set aside for salaries of UHC staff.
The government has also earmarked significant resources towards combating communicable diseases and strengthening immunisation programmes.
Mbadi announced an allocation of Sh18.5 billion for Global Fund-supported programmes and Sh6.4 billion for vaccines and immunisation initiatives.
“To reduce the burden of communicable diseases and advance immunisation, I am proposing Sh18.5 billion for the Global Fund and Sh6.4 billion for vaccines and immunisation programmes,” he said.
The budget further prioritises the fight against cancer and other chronic illnesses through targeted investments in treatment and healthcare infrastructure.
A total of Sh3 billion has been allocated to the Emergency, Chronic and Critical Illness Fund, while Sh1 billion will support the construction of a cancer centre at Kiambu County Level Five Hospital.
Kenyatta National Hospital will receive Sh300 million to strengthen cancer management services, while Sh150 million has been allocated for the expansion of the Comprehensive Cancer Centre at Kenyatta University Teaching, Referral and Research Hospital.
To improve specialised healthcare services, Mbadi proposed Sh45.3 billion for national referral hospitals.
Additional allocations include Sh470 million for the construction of the Kenyatta National Hospital Burns and Paediatric Centre, Sh300 million for renovation and replacement of obsolete equipment at the hospital and Sh2 billion for the construction of a new 2,000-bed multi-speciality complex at Moi Teaching and Referral Hospital.
The government has also allocated Sh29 billion to the Kenya Medical Supplies Authority (KEMSA) to strengthen the supply of medicines and medical commodities across public health facilities.
Other allocations include Sh3.1 billion for the Kenya Medical Research Institute (KEMRI), Sh1.3 billion for integrated reproductive health programmes, Sh500 million for family planning and reproductive health commodities and Sh600 million for equipment at the National Blood Transfusion Service.
Health workforce development also received a substantial boost, with Sh9.3 billion allocated for medical interns, Sh10.9 billion for the Kenya Medical Training College and Sh3.2 billion for stipends and medical insurance for Community Health Promoters.
Mbadi said the investments are intended to strengthen healthcare delivery, improve access to treatment and enhance the country's capacity to respond to emerging health challenges.
