2025/26 Budget: Mbadi allocates additional funds for health sector

The government has proposed an allocation of Ksh138.1 billion to the health sector in the 2025/2026 financial year, marking a renewed push to strengthen healthcare systems and access.
Treasury Cabinet Secretary John Mbadi, while addressing the National Assembly on Thursday, June 12, 2025, said the proposed health allocation has risen from Ks123 billion in the previous year, with a strong focus on expanding primary healthcare, vaccinations, and support for vulnerable groups.

“Access to quality and affordable healthcare through the Universal Health Coverage programme is central to this government,” Mbadi said.
“I have proposed an allocation of Ksh138.1 billion to the health sector to support various activities and programmes.”
Key allocations highlighted
The allocation includes Ksh6.2 billion for UHC coordination and management and Ksh13.1 billion for primary healthcare, a notable increase from the Ksh7.1 billion set aside in the current financial year.
Additionally, Ksh430 million has been earmarked to provide medical cover for orphans, the elderly, and persons with disabilities.
“This includes Ksh6.2 billion for Universal Health Coverage coordination and management, Ksh13.1 billion for primary healthcare, up from Ksh7.1 billion in the current year, and Ksh430 million to provide medical cover for orphans, the elderly, and disabled persons in our society,” Mbadi told MPs.
To boost Kenya’s disease response efforts, Mbadi proposed KSh 17.3 billion for the Global Fund and KSh 4.6 billion for vaccines and immunization programmes.

“I have proposed Ksh17.3 billion for the Global Fund and Ksh 4.6 billion for vaccines and immunization,” he said.
Reversal after previous cuts
Mbadi’s proposal follows years of cuts in health sector funding. In the 2024/25 budget, his predecessor, CS Njuguna Ndung’u, had allocated Ksh127 billion, down from Ksh141.2 billion in 2023/24 and Ksh146.8 billion in 2022/23.
That trend sparked concern over Kenya’s failure to meet the Abuja Declaration target of allocating at least 15% of the national budget to health.
In last year’s budget, the government proposed Ksh42 billion for UHC, Ksh 2 billion for free maternity healthcare, and Ksh4.6 billion for specialised equipment and stipends for community health promoters.
Further allocations included Ksh28.7 billion to the Global Fund, Ksh4.6 billion for vaccines, and Ksh861.5 million for medical cover for vulnerable groups.
National referral hospitals like KNH and Moi Teaching and Referral received Ksh29.7 billion combined.
Mbadi reaffirms health focus
Mbadi said the renewed investment was necessary to address historical underfunding and improve service delivery across the country.
“We remain committed to building a health system that protects every Kenyan, especially the most vulnerable,” he told Parliament.
If approved, the new budget will mark a reversal of the recent downward trend and reinforce the government’s health priorities heading into the 2025/2026 financial year.