The government plans to spend approximately Sh4 billion to upgrade two major health facilities—Jaramogi Oginga Odinga Teaching and Referral Hospital (JOOTRH) in Kisumu County and Mwai Kibaki Teaching and Referral Hospital in Othaya, Nyeri County—to national referral hospitals.

JOOTRH has been allocated Sh2.831 billion, while Mwai Kibaki Teaching and Referral Hospital will receive Sh1.352 billion.

Appearing before the Budget and Appropriations Committee (BAC) to defend the Ministry of Health’s budget, Health Committee Chairperson James Nyikal said the upgrade is intended to decentralise access to quality healthcare and reduce pressure on the country’s two existing national referral hospitals: Kenyatta National Hospital (KNH) and Moi Teaching and Referral Hospital (MTRH).

“The committee observed that the Ministry of Health is in the final stages of transitioning JOOTRH and Mwai Kibaki Teaching and Referral Hospital into national referral facilities,” Nyikal told the Budget team.

“To ensure a seamless transition, in the financial year 2025/26, Sh2.831 billion and Sh1.352 billion have been allocated to JOOTRH and Mwai Kibaki Hospital, respectively.”

Nyikal added that the two hospitals already serve as regional referral centers and are expected to experience a surge in patient numbers and government funding once the transition is complete.

He appealed to the BAC, which is currently receiving submissions from departmental committee chairs on the 2025/2026 budget estimates, to ensure the funds are availed to finalize the process.

However, some MPs demanded clarification on how the Sh4 billion figure was determined.

Laikipia Woman Representative Jane Kagiri questioned the methodology behind the cost estimates.

“I would like you to tell us how you arrived at these figures. We need transparency,” she said.

Precarious livelihoods

The Cabinet has already approved the elevation of JOOTRH to a State Corporation, which is expected to enhance healthcare delivery in the region and place it on par with Nairobi’s KNH.

JOOTRH was commissioned in 1969 and opened to the public in October of the same year. In 2024, it was designated a Level 6 facility following a joint assessment by the Kenya Health Professional Oversight Authority (KHPOA), the Kenya Medical Practitioners and Dentists Council (KMPDC), and the Nursing Council of Kenya.

Meanwhile, Mwai Kibaki Teaching and Referral Hospital was officially gazetted as an independent parastatal in September 2024.
At the same time, Nyikal disclosed that in the 2025/2026 budget, revealed additional allocations in the 2025/2026 budget, the government has made allocations to various agencies and facilities including Mathari National Teaching and Referral Hospital Sh1 billion; Kenyatta National Hospital (KNH) Sh18.8 billion; Kenya Medical Supplies Authority (Kemsa) Sh5.1 billion; Kenyatta University Teaching, Referral & Research Hospital (KUTRRH) Sh5.3 billion; Moi Teaching and Referral Hospital (MTRH) Sh10.8 billion and Kenya Medical Research Institute (Kemri) – Sh2.5 billion

“A review of the proposed recurrent budget for the State Department for Medical Services in the 2025/26 financial year shows that 31.7 per cent of the total recurrent budget is funded by Appropriations-in-Aid (AIA) collected by Semi-Autonomous Government Agencies (SAGAs), while 68.3 per cent is funded by the exchequer,” said Nyikal.

“This demonstrates SAGAs’ heavy reliance on government funding to sustain their recurrent activities.”