Government’s Budget for Health Sector Leaves Kenyans Spending Too Much Out of Their Pockets
Kenya’s allocation to the health sector has been increasing every other fiscal year, but why are the citizens paying too much out of their own pockets to get ‘proper’ healthcare?
Each year, approximately one million Kenyans fall below the poverty line due to health-care related expenditure. The widespread of poverty due to diseases, low income, unemployment rates, drought, and other vices further predisposes many Kenyans to diseases while at the same time slowing all aspects of growth in the economy.
Current trends across the world show that spending on health is growing faster than the rest of the global economy. In fact, a report by the World Health Organization (WHO) noted that the spending accounts for 10 percent of global gross domestic product (GDP).
Another new report by WHO shows that there is a swift upward trajectory of global health spending, which is particularly noticeable in low- and middle-income countries where health spending is growing on average 6 percent annually compared with 4 percent in high-income countries.
READ Health Still More Expensive Than Any Other Global Economies
Health sector budget allocations in Kenya
A close look at the budgetary allocation for the health sector in Kenya shows that the expenditure has been on the rise. In 2001/2002, Kenya spent 5.2 billion shillings on the health sector. The figure had consistently risen to 34.4 billion shillings by 2008/2009.
In the financial year 2013/14, the allocations to the Ministry of Health and related Ministries, Departments and Agencies (MDAs) stood at 41.70 billion, 54.10 billion in 2014/15, 61.70 billion in 2015/16, and 73.60 billion shillings in 2016/17.
In the financial year 2017/18, the government allocated approximately 60.9 billion shillings for healthcare services, compared to 60.3 billion shillings in 2016/17. The amount was projected to increase in the subsequent fiscal years to 61.9 billion and 62.7 billion shillings for 2018/19 and 2019/20 respectively.
On average, between 2013 and 2017, Kenya spent 7.1 percent of the total budget on the health sector as shown below.
Average health sector spending between 2013 and 2017.
Summary of 2018/19 Health Allocations
The amount is in Kenyan shillings
- Free Maternal Healthcare program and leasing of medical equipment: 13.7 billion
- Doctors/Clinical Officers/Nurses internship program: 2.9 billion
- Cancer Services (leasing of Computed Tomography Scanners Equipment): 7 billion
- Free Primary Healthcare: 2 billion
- Health Insurance Subsidy Program (Elderly and Disabled): 0.8 billion
- Roll out of Universal Health Coverage: 2.5 billion
- Establishment of Cancer Institute: 400 million
- Kenyatta National Hospital: 11.7 billion
- Moi Teaching and Referral Hospital: 7.7 billion
- KEMRI: 2.2 billion
- KMTC: 4.7 billion
The current system of government devolved health services to the 47 counties leaving the central government with policy functions, research, and the regulation of the health sector.
Also, the government is responsible for Level Six hospitals, which are mainly referral facilities such as the National Spinal Injury Hospital in Nairobi, Moi Teaching and Referral Hospital in Eldoret, and the Kenyatta National Hospital in Nairobi.
The counties are responsible for facilities classified between level 1 and level 5.
People spending more from their pockets for health
The trend of an increase in budgetary allocation to the healthcare sector is a good thing, but why are people breaking their banks to get medical access in Kenya?
For one, the allocation in Kenya isn’t enough to offer financial security in terms of healthcare to the citizens. According to the WHO, Governments normally contribute an average of 51 percent of a country’s health spending, while more than 35 percent of health spending per country comes from out-of-pocket expenses.
The implication of this propor