Kenya’s health sector is at a crossroads following a significant budget shortfall, as the National Treasury slashed Sh68 billion from the proposed health expenditure for the 2025/26 financial year. The State Department for Medical Services had requested Sh426.8 billion, yet only Sh172.6 billion was allocated, leaving an alarming funding deficit of Sh254.2 billion. This financial gap has sparked concerns among healthcare officials, particularly regarding essential programs such as HIV treatment, malaria prevention, vaccines, and blood transfusion services.
The Ministry of Health warned that the budget cut would hinder the procurement of key medical supplies, jeopardizing progress made in combating life-threatening diseases. According to Principal Secretary Harry Kimtai, at least Sh30 billion is required to implement a comprehensive primary healthcare system, while an additional Sh15 billion is needed to purchase essential medical supplies, including HIV and family planning commodities.
Blood transfusion services, which play a critical role in emergency care and maternal health, face a dire situation, with a Sh3 billion shortfall. The dwindling financial support from international donors, particularly the United States Agency for International Development (USAID), has further strained the sector. Kimtai attributed the Sh20 billion funding gap to an executive order issued during former U.S. President Donald Trump’s administration, which led to a freeze on USAID assistance for healthcare programs.
Kenya has long relied on global partners to sustain its HIV, tuberculosis (TB), and malaria programs. The Ministry of Health projects that without sufficient funding, the country will experience an annual deficit of Sh12.26 billion for these essential services. This could have devastating consequences, particularly for the 1.3 million Kenyans living with HIV who depend on antiretroviral therapy.
Health Cabinet Secretary Deborah Barasa highlighted that the cut in HIV funding alone could lead to approximately 60,000 new HIV infections by 2030. Kenya has the seventh-largest HIV burden globally, making sustained investment in prevention and treatment crucial. Similarly, malaria and TB programs, which have seen steady progress over the years, are at risk of setbacks if funding constraints persist.
The freeze on USAID funding has already impacted the procurement of critical health products, with a preliminary analysis indicating a shortfall of Sh30.9 billion. The Health Ministry has been engaging with U.S. officials to address the issue, but the situation remains uncertain.
To counter the effects of reduced donor assistance, the State Department for Medical Services is exploring alternative financing options, including:
Local Manufacturing of Health Products – Investing in domestic production of medical supplies to reduce reliance on imports and external funding.
Domestic Resource Mobilization – Encouraging public-private partnerships and increasing government contributions to health financing.
Ring-fencing Health Funds – Protecting healthcare allocations in future budgets to prevent further disruptions.
Despite the budgetary constraints, the Ministry of Health remains committed to implementing 42 critical projects by June 2026. However, the success of these initiatives hinges on securing additional financial support, either through domestic revenue generation or renewed international partnerships.
If left unaddressed, the current funding gap could erode hard-won gains in public health, reversing progress in disease prevention and treatment. Stakeholders, including Parliament and the Treasury, must prioritize health spending to safeguard the well-being of millions of Kenyans.
