Health Ministry faces Ksh.59B budget deficit amid USAID freeze

The Ministry of Health is seeking the help of Parliament to plug the Ksh.59 billion funding shortfall that has been exacerbated by the United States Agency for International Development (USAID) funding freeze.

The Ministry, speaking before the National Assembly’s Committee on Health on Wednesday, highlighted that it had requested Ksh.426.8 billion in the 2025/2026 financial year budget estimates but only got 172.6 billion in the just released budget policy statement.

“The State Department has 42 projects to be implemented in the FY 2025/26. The total allocation to the capital projects/programmes is Ksh.27.495 million, comprising of Ksh.13.36 million under the Kenyan government and Ksh.14.129 million under donor-funded support,” said Health PS Harry Kimtai.

The Health Committee took the Ministry and its agencies to task over unjustified budgets, but some were quick to clear the air.

“We have received Ksh.3.7 billion and we have disbursed Ksh.1.3 billion from the returns. We expect to disburse Ksh.1.6 billion more to cover facilities, especially primary health facilities,” said Social Health Authority CEO Dr. Robert Ingasira.

“We have allocated Ksh.2.1 billion for emergency and chronic illness. The expenditure is very low; it is 21 million. We have allocated Ksh.4 billion for primary health care, Ksh.375 million has been spent,” National Assembly Committee on Health Chair and Endebess MP Robert Pukose said in response.

The USAID funding freeze is further straining service delivery at both the county and national levels.

“A Ksh.28 billion gap is really huge for the country, and therefore, as we prepare and conclude this budget, we need to look at those critical areas, supporting counties to roll out some of the programmes,” said National Syndemic Disease Control Council CEO Dr. Ruth Masha.

“Ampath, as our main HIV provider in the western region covering about 7 counties, this is one of the biggest areas that will be impacted,” added Moi Teaching and Referral Hospital CEO Dr. Philip Kirwa.

The Ministry of Health is asking for additional funding for what they call unfunded priorities in the 2025/2026 financial year. They need Ksh.59 billion, of which Ksh.30 billion is meant for a fully public-financed primary health care system and Ksh.5 billion for procurement of strategic commodities like HIV, family planning, and vaccines.

Another Ksh.3 billion is needed to purchase essential commodities; blood bags, equipment to separate the different blood groups and cells, among others. The USAID freeze has created a Ksh.20 billion deficit, and they need an additional Ksh.1 billion to cover several presidential directives to fund health facilities across the country.

The Kenya Medical Research Institute (KEMRI) has decried a promise of Ksh.400 million that was later scrapped from the budget, saying it is time that the country financed its research programmes.

“Our centre in Kisumu, Busia, and Kericho are funded more through the US side through Wellcome Trust. We had requested for 100M to transfer the staff. This is still our prayer,” said KEMRI Director Elijah Songok.