A new wave of private investment is reshaping Kenya’s healthcare system, with official figures showing a notable rise in medical facilities during the first full year under the Social Health Authority arrangement.
According to the 2026 Economic Survey, the country added 739 new health facilities in 2025, most of them privately owned Level 3 medical centres. The development pushed the total number of operational facilities upward by 4.6 per cent.
The report places the number of active health facilities at 16,713 in 2025, compared to 15,974 in the previous year. Registration and oversight of these facilities is handled by the Kenya Medical Practitioners and Dentists Council (KMPDC).
“The number of operational health facilities increased by 4.6 per cent from 15,974 in 2024 to 16,713 in 2025,” the report states. “The increase was mainly attributed to growth in private medical centres and clinics.”
Among the fastest growing category were private Level 3 medical centres, which rose from 1,208 to 1,519 within a year. This points to increased investor confidence in the healthcare sector under the new financing model.
Health Cabinet Secretary Aden Duale has maintained that private sector involvement is central to strengthening service delivery and achieving national health goals.
“No meaningful progress can be achieved without sustained collaboration,” Duale said during the Kenya Healthcare Federation CEO Forum in Nairobi.
“The private sector remains central to delivering Universal Health Coverage.”
Ministry of Health data shows that 10,277 facilities are currently engaged in SHA transactions. These include 5,672 county facilities, 533 faith-based institutions, and 4,072 private health providers.
County facilities receive the largest portion of SHA primary healthcare payments at 57 per cent, while private facilities take 36 per cent and faith-based organisations receive 7 per cent.
Urban centres continue to dominate health financing distribution. Nairobi leads in SHA payouts, followed by Kiambu, Mombasa, Kakamega, and Bungoma, reflecting demand and population density.
The Economic Survey also reports improvements in health infrastructure. Hospital bed capacity increased by five per cent to 106,300 in 2025, while cots rose by 8.3 per cent to 12,200. Public health spending also recorded an increase across both levels of government.