Health Experts Call for Smarter Use of Health Funds Amid Budget Cuts

Africa Science News

By Lenah Bosibori

Health experts, policymakers, and county leaders gathered in Nairobi to tackle a pressing question for Kenya’s health sector: are existing resources being used efficiently, and how can they be maximized amid this year’s funding cuts?

Under the theme “What’s in the Pool?”, the forum, organized by the Health NGOs Network (HENET), emphasized that health is not just a service but an investment in Kenya’s social and economic development. Participants explored innovative ways to strengthen financing and bridge the gap between policy and budgeting.

“We already have resources in the pool. The question is whether we are using them well,” said Dr. Margaret Lubaale, HENET Executive Director. “Today, we are looking at how existing funds can be better managed, and how innovative financing like blended financing, taxes on tobacco and alcohol, or debt swaps can support health services.”

The forum highlighted county-level innovations, with Murang’a County showcased for automating parking fees and facility charges, enabling faster decisions and more efficient resource use. Experts urged other counties to adopt similar strategies instead of relying solely on national government funds.

Governor Dr. Irungu Kang’ata shared how Murang’a is bringing care closer to patients through digitization. “Our main hospital in Murang’a town is two hours from the Aberdare Forest.

Patients with chronic illnesses like high blood pressure and diabetes used to travel long distances for specialist care. With internet access, we’ve started digitizing services to make healthcare more accessible,” he said.

Participants also warned that inefficiencies like late fund disbursements, procurement delays, and fragmented spending reduce the value of public health investments. “Money budgeted does not always translate into money spent. Money spent does not always translate into value,” Dr. Lubaale added.

Keynote speaker Dr. Omar Ahmed Omar, Director of Health Sector Coordination and Research Development at the Ministry of Health, outlined Kenya’s health financing picture. Annual spending is estimated at KES 500 billion, with 60% from national and county governments, 20% from donors, and 20% from private payments and insurance.

“Even if we optimize the system fully, KES 300 billion could cover the population under effective health schemes,” Dr. Omar said, referring to the Social Health Authority (SHA) and private insurance. Currently, SHA covers 85% of its target population but spends only KES 80–90 billion, far below the KES 240–260 billion needed for universal coverage.

Dr. Omar also noted that Kenya’s private sector, which runs 30–40% of health facilities, is underused. Beyond service delivery, it offers opportunities for local manufacturing, research, and development of diagnostics, medical devices, and innovative medicines. Supporting local production, even at slightly higher costs, could strengthen capacity, create jobs, and improve health services.

Experts agreed that improving Kenya’s health sector requires multiple strategies: increasing efficiency in public spending, leveraging private sector capacity, exploring innovative financing, and ensuring resources reach the population.

“Every inefficiency increases out-of-pocket costs for households,” Dr. Omar said. “Our goal is to fully use available resources to improve the health and well-being of every Kenyan.”

The forum concluded with discussions on boosting domestic funding, better use of county-level resources, and stronger collaboration between government, NGOs, and the private sector. HENET plans to continue these discussions into 2026 to enhance transparency and maximize health financing for all Kenyans.

Share This Article
Leave a comment