The health sector is among the biggest winners in the 2026/27 budget after the government increased its allocation by KSh39.1 billion to KSh177.2 billion, signaling a renewed commitment to Universal Health Coverage (UHC) and strengthening access to essential healthcare services across the country.
The allocation, up from KSh138.1 billion in the previous financial year, comes amid growing public support for increased investment in healthcare as Kenyans seek affordable and accessible medical services.
Treasury Cabinet Secretary John Mbadi said the increased funding is aimed at strengthening healthcare delivery and advancing the government’s UHC agenda under the Bottom-Up Economic Transformation Agenda (BETA).
“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 while presenting the 2026/27 Budget Statement in Parliament.
A significant portion of the funding has been directed towards primary healthcare and preventive services, reflecting the government’s strategy of shifting focus from expensive curative care to community-based interventions.
The budget allocates KSh19.1 billion to the Primary Health Care Fund to strengthen frontline health services, while KSh8.6 billion has been set aside for salaries of UHC staff deployed across the country. The government has also earmarked KSh18.5 billion for HIV, tuberculosis and malaria programmes supported through the Global Fund and KSh6.4 billion for vaccines and immunisation initiatives.
The Emergency, Chronic and Critical Illness Fund will receive KSh3 billion to support treatment and management of severe illnesses that often place a heavy financial burden on households.
Health experts have long argued that sustained funding for primary healthcare, disease prevention and specialised treatment is critical to reducing out-of-pocket healthcare expenses and improving health outcomes.
According to the Ministry of Health, investments in community health systems, disease surveillance, preventive healthcare and primary care networks are central to accelerating UHC and reducing the long-term cost of disease management.
The budget also underscores the government’s efforts to strengthen healthcare infrastructure and referral services. Referral hospitals have been allocated KSh45.3 billion, while the Kenya Medical Supplies Authority (KEMSA) will receive KSh20.9 billion to improve the availability of medicines and medical supplies across the country.
Mbadi said the increased allocation is intended to strengthen service delivery and ensure more Kenyans can access quality healthcare regardless of their location or income level.
“Equitable access to quality health services is essential for human capital development, productivity and poverty reduction. Towards this end, Treasury has proposed Sh177.2 billion to the health sector in the 2026/27 financial year to strengthen service delivery across the country,” he said.
The increased health budget is expected to support the implementation of Taifa Care and the Social Health Authority reforms while improving access to healthcare services, particularly for vulnerable populations, children and patients living with chronic illnesses.
For ordinary Kenyans, the increased spending could translate into improved access to primary healthcare, expanded immunisation programmes, better disease management and reduced financial strain when seeking treatment—key pillars in the country’s pursuit of Universal Health Coverage.
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