National Treasury Cabinet Secretary John Mbadi has proposed a Sh177.2 billion allocation to the health sector in the 2026/27 financial year, outlining a broad package of investments aimed at advancing Universal Health Coverage (UHC), strengthening frontline health services, improving disease prevention, and expanding treatment capacity for cancer and other chronic illnesses.
Presenting the 2026 Budget Statement in Parliament on Thursday, Mbadi said equitable access to quality healthcare remains critical to Kenya’s social and economic development, describing UHC as a cornerstone of a stronger social contract between the government and citizens.
“Universal Health Coverage is central to a better social contract. Equitable access to quality health services is essential for human capital, productivity and poverty reduction,” Mbadi told lawmakers.
“To this end, I have proposed Sh177.2 billion to the health sector to advance UHC and strengthen essential services.”
A significant portion of the proposed funding will support primary healthcare and the health workforce, key pillars of the government’s ongoing healthcare reforms.
Mbadi proposed Sh8.6 billion for salaries of UHC staff and Sh19.1 billion for the Primary Health Care Fund to finance frontline health services across the country.
The Treasury CS said the investment is intended to improve access to healthcare at the community level while reducing pressure on higher-level facilities.
The budget also prioritizes the fight against communicable diseases and the expansion of immunization programmes.
Mbadi announced a proposed allocation of Sh18.5 billion for the Global Fund and Sh6.4 billion for vaccines and immunization initiatives.
“To reduce the burden of communicable diseases and advance immunization, I am proposing Sh18.5 billion for the Global Fund and Sh6.4 billion for vaccines and immunization,” he said.
“This investment will protect children and communities and reduce health-related economic shocks.”
Cancer care and the management of chronic illnesses also feature prominently in the spending plan, reflecting growing concern over the burden of non-communicable diseases in the country.
Mbadi proposed Sh3 billion for the Emergencies, Chronic and Critical Illness Fund, alongside targeted allocations for cancer treatment infrastructure and services.
The Treasury has set aside Sh1 billion for the construction of a cancer centre at Kisii Level Five Hospital, Sh300 million to strengthen cancer management services at Kenyatta National Hospital, and Sh150 million for the expansion of the Comprehensive Cancer Centre at Kenyatta University Teaching, Referral and Research Hospital.
“Tackling cancer and other chronic illnesses requires focused investment,” Mbadi said.
“These measures will expand diagnostic and treatment capacity across the region, given that we are leading as a health hub in this region.”
To improve tertiary healthcare services, the Cabinet Secretary proposed Sh45.3 billion for referral hospitals, including major investments in infrastructure and equipment upgrades.
Among the allocations is Sh470 million for the construction of a burns and paediatric centre at Kenyatta National Hospital and Sh300 million for renovations and replacement of obsolete equipment at the facility.
Mbadi also proposed Sh2 billion for the construction of a new 2,000-bed multi-specialty complex at Moi Teaching and Referral Hospital, a project expected to significantly expand the country’s referral healthcare capacity.
The budget further seeks to strengthen healthcare supply chains, medical research and reproductive health programmes.
Mbadi proposed Sh20.9 billion for the Kenya Medical Supplies Authority (KEMSA) to support the procurement and distribution of medical commodities nationwide.
Additional allocations include Sh3.1 billion for the Kenya Medical Research Institute (KEMRI), Sh1.3 billion for the Integrated Reproductive Health Programme, Sh500 million for family planning and reproductive health commodities, and Sh600 million for equipment at the National Blood Transfusion Service.
The Treasury CS said the funding would help ensure reliable healthcare delivery while strengthening the systems that support medical services across the country.
Healthcare workers and medical training institutions are also set to benefit from the proposed budget.
Mbadi announced Sh9.3 billion for medical interns, Sh10.9 billion for the Kenya Medical Training College (KMTC), and Sh3.2 billion for stipends and medical insurance for community health promoters.
“As a country, we value the services offered by our health workers,” he said.
The proposed allocations are aimed at building workforce capacity and supporting the implementation of healthcare reforms designed to expand access to affordable and quality services.
If approved by Parliament, the health budget will form a key component of the government’s efforts to strengthen Kenya’s healthcare system, improve health outcomes and accelerate progress toward achieving Universal Health Coverage.