Kenya: Government Allocates Sh177.2 Billion to Health Sector in Push for Universal Health Coverage

Nairobi — The government has proposed a Sh177.2 billion allocation to the health sector in the 2026/27 financial year, with Treasury Cabinet Secretary John Mbadi saying the funding will accelerate the rollout of Universal Health Coverage (UHC) and strengthen access to essential healthcare services across the country. Presenting the Budget Statement in Parliament on Thursday, Mbadi described healthcare as a key pillar of the government's Bottom-Up Economic Transformation Agenda (BETA), arguing that quality and affordable health services are critical to improving productivity, reducing poverty and building human capital. "Universal health coverage is central to BETA's social contract. Equitable access to quality health services is essential for human capital, productivity and poverty reduction," Mbadi said. Among the major allocations is Sh19.1 billion for Primary Health Care Funds to support frontline health services, alongside Sh8.6 billion for UHC staff deployed across the country. The Treasury CS said the funding is intended to strengthen healthcare delivery at the community level and reduce the financial burden faced by households seeking medical care. To support disease prevention and control, the government has earmarked Sh18.5 billion for programmes supported through the Global Fund and Sh6.4 billion for vaccines and immunisation initiatives. Mbadi said the investments will help protect vulnerable populations, particularly children, while reducing the economic and social impact of preventable diseases. The budget also places significant focus on the fight against cancer and other chronic illnesses, which continue to place growing pressure on the country's health system. To support treatment and management of critical illnesses, the government has proposed Sh3 billion for the Emergencies, Chronic and Critical Illness Fund. Additional allocations include Sh1 billion for the construction of a cancer centre at Kisii Level 5 Hospital, Sh300 million to strengthen cancer management services at Kenyatta National Hospital and Sh150 million for the expansion of the Comprehensive Cancer Centre at Kenyatta University Teaching, Referral and Research Hospital. Mbadi said the projects are aimed at increasing access to specialised diagnosis and treatment services while reducing the need for patients to travel long distances for care. Referral hospitals are set to receive Sh45.3 billion under the proposed budget, reflecting the government's focus on improving specialised healthcare services. Among the flagship projects is the planned construction of a new 2,000-bed multi-speciality facility at Moi Teaching and Referral Hospital, which has been allocated Sh2 billion. Kenyatta National Hospital will receive Sh470 million for the construction of burns and paediatric centres and a further Sh300 million for renovations and replacement of ageing medical equipment. The Treasury CS said the investments will expand capacity at major referral facilities and improve the quality of care available to patients. To strengthen medical supply chains, the government has allocated Sh20.9 billion to the Kenya Medical Supplies Authority (KEMSA), while the Kenya Medical Research Institute (KEMRI) is set to receive Sh3.1 billion to support health research and innovation. Other allocations include Sh1.3 billion for the Integrated Reproductive Health Programme, Sh500 million for family planning and reproductive health commodities and Sh600 million for equipment at the National Blood Transfusion Service. Health workers also feature prominently in the spending plan. Mbadi proposed Sh9.3 billion for medical interns and Sh10.9 billion for the Kenya Medical Training College (KMTC) to strengthen training and workforce development. Community health promoters, who form the backbone of preventive healthcare at the grassroots, will receive Sh3.2 billion in stipends and Sh396 million for medical insurance cover. The Treasury CS said the investments are designed to build a stronger healthcare workforce while ensuring communities continue receiving essential health services. The proposed allocations come as the government seeks to deepen healthcare reforms under the Social Health Authority and expand access to quality medical services as part of its broader universal health coverage agenda.