The Ministry of Health is facing a major funding shortfall of Sh321.4 billion in the 2025/26 financial year, putting key health programmes at risk.
These include universal health coverage, the supply of essential medicines, and the rollout of new health laws.
Medical Services Principal Secretary Dr. Ouma Oluga told the National Assembly’s Health Committee, chaired by Seme MP Dr. James Nyikal, that the ministry needs Sh426.8 billion—Sh350.6 billion for recurrent spending and Sh76.2 billion for development.
However, the Budget Policy Statement (BPS) has allocated only Sh172.6 billion, while the proposed estimates have cut this even further to Sh105.4 billion. This leaves a funding gap of Sh321.4 billion.
“This gap threatens the success of many critical health programmes,” said Dr. Oluga.
He said the shortfall will affect several areas including salaries for staff in State agencies, vaccine supply, medical equipment leasing, and support for HIV/AIDS, family planning, and immunisation.
Dr. Oluga also revealed that the Ministry is struggling with unpaid bills amounting to Sh3.8 billion, which could roll over into the next financial year. He asked Parliament to urgently allocate Sh500 million for operations and maintenance to help monitor ongoing projects.
He further appealed for Sh145 billion to roll out the Social Health Insurance Fund (SHIF), in line with the new Social Health Insurance Act, Primary Health Care Act, and Digital Health Act. These laws aim to create new funding streams for health, including the Primary Health Care Fund and the Emergency, Chronic and Critical Illness Fund.
On vaccine supply, the Ministry needs Sh4.27 billion—Sh2 billion for regular vaccines, Sh1.69 billion to co-finance GAVI vaccines, and Sh585 million to replenish UNICEF stocks. Only Sh2 billion has been allocated so far, leaving a deficit of Sh930 million.
“If we don’t settle this amount by June 30, we risk losing GAVI funding worth Sh6.5 billion next year,” Dr. Oluga warned.
For family planning, the Ministry needs Sh2.88 billion, while the HIV programme faces a shortfall of Sh33.9 billion due to a freeze in funding.
Dr. Oluga also requested Sh3 billion to buy kits for community health promoters and another Sh2.5 billion to upgrade health systems and improve patient care.
Health Cabinet Secretary Aden Duale, who also appeared before the committee, addressed concerns about sidelining Director General for Health Dr. Patrick Amoth. He assured MPs that the DG’s office remains active and legal under the Health Act, 2017.
“There are issues at Afya House I’ve had to deal with in the last 36 days,” Duale said. “But I’ve met with all directorates and made it clear that Dr. Amoth’s role as chief technical advisor must be respected.”
The CS added that while he will handle policy matters, the operational and budgetary duties will be led by Dr. Oluga and other top officers.
“Everyone in the Ministry must stick to their mandate,” Duale said.
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