The National Treasury has proposed a KES 177.2 billion allocation to the health sector in the 2026/2027 budget, laying out a broad expenditure plan that stretches from new cancer treatment centres to funds for community health workers across the country. The allocation represents a KES 37.5 billion growth from the current 2025/2026 fiscal year, and will bolster the rollout of Kenya’s Universal Health Coverage program and strengthen acces to essential healthcare services countrywide.
Among the significant proposals was cancer treatment and management capabilities, which remains one of the top causes of death in Kenya. CS Mbadi proposed KES 3.0 billion for the Emergencies, Chronic and Critical Illness Fund, which helps Kenyans access treatment for conditions that would otherwise would be expensive.
Beyond the fund, the CS proposed KES 1.0 Billion funding for construction of a Cancer Centre at Kisii Level 5 Hospital. This move is expected to bring specialist oncology services to the Nyanza and Western Kenya regions, where patients currently travel hundreds of kilometres for treatment. A further KES 300 million has been allocated to strengthen cancer management at Kenyatta National Hospital (KNH) – the largest hospital in Kenya and East Africa, while KES 150 million has been allocated to the expansion of the Comprehensive Cancer Centre at Kenyatta University Teaching, Referral and Research Hospital (KUTRRH).
Rebuilding Referral Hospitals
On tertiary care, CS Mbadi proposed a KES 45.3 billion for referral hospitals, including KES 487 million for a Burns and Paediatrics Centre at KNH, alongside a KES 300 million for renovations and replacement of obsolete equipment at the same institution. The single largest referral hospital investment is a proposed KES 2.0 billion for the construction of a new 2,000-bed multi-specialty facility at Moi Teaching and Referral Hospital (MTRH) in Eldoret.
Apart from the proposed allocations to referral hospitals, the National Treasury has proposed KES 20.9 billion for Kenya Medical Supplies Agency (KEMSA) to strengthen the supply chain of medicines, and KES 3.1 billion for Kenya Medical Research Institute (KEMRI) to bolster local health research capacity. KES 500 million has been allocated to family planning and reproductive health commodities while KES 600 million has been allocated to acquire equipment at the National Blood Transfusion Services.
Investments in the health force include a proposed KES 9.3 billion package for medical interns and KES 10.9 billion for the Kenya Medical Training Colleges to bolster mid-level health training countrywide. At the community level, the Treasury proposed KES 3.2 billion in stipends and KES 396 million in medical insurance cover for Community Health Promoters. The Treasury CS said these investments are designed to build a stronger healthcare workforce while ensuring communities continue receiving essential health services. The proposed allocations come as the government seeks to deepen healthcare reforms and expand quality medical services.
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