Kenyan health sector faces $350m budget crisis, threatening HIV services
Kenya’s health sector is faced with a severe $355 million budget deficit that threatens to disrupt critical services, including HIV and tuberculosis treatment, vaccine procurement, and the employment of thousands of healthcare workers under the country’s Universal Health Coverage (UHC) initiative.
The funding gap was revealed in recent submissions by the National Assembly Health Committee to the Budget and Appropriations Committee. The crisis has been worsened by the suspension of key donor support, particularly from the United States, a long-time partner in Kenya’s HIV response, Capital FM reports.
According to the committee, the Ministry of Health urgently needs $250 million to sustain HIV and TB programs currently at risk due to the funding freeze. Another $65 million is required to hire 8,500 UHC health workers, while $31 million is needed to procure essential commodities, including HIV treatments, family planning supplies, and vaccines. Committee
Chair Dr. James Nyikal stressed that this amount reflects Kenya’s counterpart funding obligations with GAVI and UNICEF. “If we don’t secure this funding, we’ll incur even higher costs later,” Dr. Nyikal warned during a budget committee briefing.
The funding crisis comes as UHC contract workers continue a prolonged strike, demanding permanent employment, salary harmonisation, and the clearance of overdue gratuities. They are also seeking a dedicated budgetary allocation in the 2025/26 fiscal year to ensure their transition into the formal workforce.
While the Treasury has allocated $29 million for UHC worker stipends, the Health Ministry estimates it will need an additional $37 million to cover end-of-contract payouts by May 2026, and $28 million more to absorb the workforce into permanent, pensionable positions.
