The Medical Services budget has been slashed to Sh105 billion, falling far below the Sh172.6 billion ceiling previously approved in the Budget Policy Statement (BPS) passed in February.

This substantial cut raises concerns about potential disruptions in service delivery across the health sector, despite the sector being critical to the poor Kenyans.

Of the Sh105 billion allocation in the latest budget estimates, Sh84.5 billion has been earmarked for recurrent expenditure, while Sh20.9 billion is designated for development projects.

Even the initial BPS ceiling of Sh172.6 billion was itself a significant reduction from the Sh254.2 billion the department had indicated was necessary to sustain its operations.

The impact of the budget cut is being felt across critical health programmes.

The fight against cancer will take a hit with the National Cancer Institute’s allocation dropping from Sh270 million to Sh243 million.

Similarly, the National Aids Control Programme has seen its budget reduced from Sh143.1 million to Sh114.2 million, potentially affecting ongoing HIV/Aids prevention and treatment initiatives.

The Kenya Blood Transfusion and Transplant Service will also be affected, with its funding dropping sharply from Sh363.3 million in the current financial year to Sh252.79 million.

According to the estimates, a total of Sh57.7 billion will go toward salaries and operational costs for Medical Services.

This includes funding for general administration and planning, medical services policy, research, curative health, immunisation, reproductive health, non-communicable diseases, and support to key national institutions such as Kenyatta National Hospital, Moi Teaching and Referral Hospital, Kenya Medical Supplies Authority, and Aids Control efforts.

In the recurrent expenditure, the Primary HealthCare Fund allocation has been increased from Sh7.1 billion in the 2024/25 budget estimates to Sh13.1 billion in the 2025/26 budget, the Emergency, Chronic and Critical Illness Fund allocation has been increased from Sh5 billion to Sh10 billion while the Digital Health Authority (DHA) allocation has been enhanced from Sh100 million to Sh314.2 million.