The Ministry of Health is staring at a staggering budget shortfall of Ksh 321.4 billion for the 2025/26 financial year, threatening the implementation of critical health programmes, including universal health coverage and essential medical supplies.
Appearing before the National Assembly’s Health Committee chaired by Seme MP Dr James Nyikal, Medical Services Principal Secretary Dr Ouma Oluga said the State Department requires Ksh 426.8 billion, comprising Ksh 350.6 billion for recurrent expenditure and Ksh 76.2 billion for development.
Proposed budget allocation to Ministry of Health in Kenya
However, the 2025 Budget Policy Statement (BPS) allocated only Ksh 172.6 billion, with Ksh 145.1 billion going to recurrent and Ksh 27.5 billion to development.
Further, the proposed annual estimates have slashed the allocation to just Ksh 105.4 billion and Ksh 84.5 billion for recurrent and Ksh 20.9 billion for development, reflecting a massive funding gap of Ksh 321.4 billion.
“The resource allocation in the proposed estimates shows a significant deviation from the BPS ceiling. This funding gap threatens the implementation of numerous essential programmes,” said Dr Oluga.
Among the most affected areas are the salaries of staff in Semi-Autonomous Government Agencies (SAGAs), presidential directive projects, Managed Equipment Services (MES), the local production of human vaccines, and the provision of medical commodities for HIV/AIDS, family planning, and routine immunisation programmes.
Dr Oluga revealed the Ministry is also grappling with pending bills amounting to Ksh 3.8 billion, which may be rolled over into the next financial year unless urgent interventions are made.
He emphasised the urgent need for Ksh 500 million for operations and maintenance, critical for monitoring ongoing projects and programmes.
He also called for Ksh 145 billion to support the rollout of the Social Health Insurance Fund (SHIF) under the Social Health Insurance Act, 2023; the Primary Health Care Act, 2023; and the Digital Health Act, 2023.
These laws established key financing mechanisms such as the Primary Health Care Fund and the Emergency, Chronic and Critical Illness Fund. We require adequate funding to operationalise them,” he said.
Budget for vaccine procurement in Kenya
On vaccine procurement, the PS said the Ministry needs Ksh 4.27 billion, including Ksh 2 billion for traditional vaccines, Ksh 1.69 billion for GAVI co-financing, which is mandatory and Ksh 585 million to replenish UNICEF stocks under the vaccine independence initiative.
He warned that the Treasury has only allocated Ksh 2 billion this year, leaving a deficit of Ksh 930 million.
“If we do not pay this by June 30, we risk losing GAVI’s counterpart funding worth Ksh 6.5 billion in the next fiscal year,” Dr Oluga cautioned.
On family planning, the Ministry is seeking Ksh 2.88 billion, while a funding freeze has left the HIV commodities programme with a Ksh 33.9 billion shortfall.
In addition, Dr Oluga requested an extra Ksh 3 billion to fund community health promoter kits, noting that only Ksh 375 million has been allocated against a total need of Ksh4 billion, leaving a pending bill of Ksh 3 billion.
He also called for Ksh 2.5 billion to support the ongoing re-engineering of health systems and processes aimed at improving service delivery and patient experience.
Is Patrick Amoth sidelined in the Ministry of Health?
Health Cabinet Secretary Aden Duale, who was also present, addressed concerns over the sidelining of Director General for Health Dr Patrick Amoth.
The CS affirmed the legality and relevance of the DG’s position, created under the Health Act, 2017, during his tenure as National Assembly Majority Leader.
“In that house called Afya House, there are many things that are not right, and in the last 36 days, I have had to sanction several actions,” Duale told the committee.
He cited Sections 16 and 17 of the Act, which define the DG as the government’s chief technical advisor on health matters.
“Unfortunately, I found the office underutilised. But I have since met all directorates and clarified that this role is established by law and must be respected.”
The CS emphasised that while he will focus on policy matters, budgetary and operational responsibilities will be overseen by Dr Oluga and other senior officials.
“Everyone at the Ministry, including myself, holds an appointment with clearly defined roles. I expect each officer to function within the bounds of their mandate,” CS Duale added.
