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Nairobi Business Monthly
Home»Briefing»Health budget falls short as donor exit sparks national crisis
Briefing

Health budget falls short as donor exit sparks national crisis

NBM CORRESPONDENTBy NBM CORRESPONDENT13th June 2025Updated:13th June 2025No Comments3 Mins Read
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An emergency procedure on a three-year-old with airway blocked by foreign object. Photo: Kenyatta University Hospital
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A nationwide health sector unrest is unfolding as Kenya’s 2025/26 budget fails to close the gaping hole left by the exit of a key donor—the United States.

With only a Sh2 billion increase to the Ministry of Health’s allocation, bringing it to Sh138 billion, the government now finds itself on shaky ground as it attempts to fulfil its Universal Health Coverage (UHC) promise amid ballooning demands and unpaid bills.

The crisis has drawn in medical interns, UHC staff, county health promoters, and health economists such as John Nyangi. Demonstrators from counties like Kwale and Murang’a took to the streets of Nairobi on 11 March 2025 to present their grievances to Parliament, brandishing banners reading “Equal work! Equal pay!” and “Remit our NHIF deductions!”

The Nairobi Law Monthly September Edition

Tensions peaked in the wake of the June 2025 budget reading, but demonstrations had already begun months earlier, when UHC workers from across the country converged in Nairobi. The dissatisfaction has only deepened following the official release of the 2025/26 budget.

While the protest took place in Nairobi, the implications are national. From ill-equipped rural clinics to overstretched urban hospitals, the crisis touches every corner of Kenya.

The Ministry of Health is reeling from the withdrawal of nearly Sh30 billion in support from the US government. USAID had been a critical lifeline in Kenya’s fight against HIV, TB, malaria, and maternal health.

The government’s response—a modest Sh2 billion bump in the health budget—is seen as wholly inadequate to meet both the donor gap and pressing domestic needs, including intern postings, equipment repairs, and unpaid health workers.

Nyangi warned: “Even if we found extra funds, it wouldn’t reach Sh30 billion… We must replace USAID funding, but the budget doesn’t address this. Where are the priorities?”

  • Kenyans brace for austerity as health and education face deep cuts

Instead of resolving the crisis, the government appears to be merely patching holes with tape. The Health Committee has highlighted a Sh3.65 billion shortfall in funding for internships alone, warning that the failure to post 5,499 medical graduates may cripple service delivery.

Counties are also unable to procure X-ray and ultrasound machines under the Managed Equipment Services programme due to Sh6.5 billion in outstanding bills.

Additionally, community health promoters (CHPs)—touted as the backbone of preventive care—remain chronically underfunded. Their kits require Sh4.39 billion, yet the budget allocates nothing.

Nyangi noted: “Failing to allocate an adequate budget undermines the foundation of UHC, which relies on CHPs. If we want to move away from curative care, which is financially straining, this must change.”

As things stand, Kenya’s journey towards Universal Health Coverage risks being derailed not by a lack of policy, but by a lack of political will and fiscal commitment.

While inflation eats away at the budget’s real value, lives are left hanging in limbo. The chants of “Equal work! Equal pay!” from Nairobi’s protesting health workers echo a deeper truth: unless urgent action is taken, UHC may remain a banner slogan rather than a lived reality.

– By Wambui Wachira

The Nairobi Law Monthly September Edition
Kenya budget 2025
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