Thursday, 15 May, 2025
Health Ministry faces sh321 billion budget shortfall, Oluga tells MPs
Bunge Tower, Parliament Buildings. Thursday, May 15th, 2025.
The Ministry of Health is staring at a staggering budget shortfall of Sh321.4 billion for the 2025/26 financial year, threatening the implementation of critical health programmes, including universal health coverage and essential medical supplies.
Appearing before the National Assembly’s Health Committee chaired by Seme MP Dr James Nyikal, Medical Services Principal Secretary Dr Ouma Oluga said the State Department requires Sh426.8 billion, comprising Sh350.6 billion for recurrent expenditure and Sh76.2 billion for development.
However, the 2025 Budget Policy Statement (BPS) allocated only Sh172.6 billion, with Sh145.1 billion going to recurrent and Sh27.5 billion to development.
Further, the proposed annual estimates have slashed the allocation to just Sh105.4 billion and Sh84.5 billion for recurrent and Sh20.9 billion for development, reflecting a massive funding gap of Sh321.4 billion.
"The resource allocation in the proposed estimates shows a significant deviation from the BPS ceiling. This funding gap threatens the implementation of numerous essential programmes," said Dr Oluga.
Among the most affected areas are the salaries of staff in Semi-Autonomous Government Agencies (SAGAs), presidential directive projects, Managed Equipment Services (MES), the local production of human vaccines, and the provision of medical commodities for HIV/AIDS, family planning, and routine immunisation programmes.
Dr Oluga revealed the Ministry is also grappling with pending bills amounting to Sh3.8 billion, which may be rolled over into the next financial year unless urgent interventions are made.
He emphasised the urgent need for Sh500 million for operations and maintenance, critical for monitoring ongoing projects and programmes.
He also called for Sh145 billion to support the rollout of the Social Health Insurance Fund (SHIF) under the Social Health Insurance Act, 2023; the Primary Health Care Act, 2023; and the Digital Health Act, 2023.
These laws established key financing mechanisms such as the Primary Health Care Fund and the Emergency, Chronic and Critical Illness Fund. We require adequate funding to operationalise them,” he said.
On vaccine procurement, the PS said the Ministry needs Sh4.27 billion, including Sh2 billion for traditional vaccines, Sh1.69 billion for GAVI co-financing, which is mandatory and Sh585 million to replenish UNICEF stocks under the vaccine independence initiative.
He warned that the Treasury has only allocated Sh2 billion this year, leaving a deficit of Sh930 million. “If we do not pay this by June 30, we risk losing GAVI’s counterpart funding worth Sh6.5 billion in the next fiscal year,” Dr Oluga cautioned.
On family planning, the Ministry is seeking Sh2.88 billion, while a funding freeze has left the HIV commodities programme with a Sh33.9 billion shortfall.
In addition, Dr Oluga requested an extra Sh3 billion to fund community health promoter kits, noting that only Sh375 million has been allocated against a total need of Sh4 billion, leaving a pending bill of Sh3 billion.
He also called for Sh2.5 billion to support the ongoing re-engineering of health systems and processes aimed at improving service delivery and patient experience.
Health Cabinet Secretary Aden Duale, who was also present, addressed concerns over the sidelining of Director General for Health Dr Patrick Amoth. The CS affirmed the legality and relevance of the DG’s position, created under the Health Act, 2017, during his tenure as National Assembly Majority Leader.
“In that house called Afya House, there are many things that are not right, and in the last 36 days, I have had to sanction several actions,” Mr Duale told the committee.
He cited Sections 16 and 17 of the Act, which define the DG as the government's chief technical advisor on health matters. “Unfortunately, I found the office underutilised. But I have since met all directorates and clarified that this role is established by law and must be respected.”
The CS emphasemphasisedwhile he will focus on policy matters, budgetary and operational responsibilities will be overseen by Dr Oluga and other senior officials.
“Everyone at the Ministry, including myself, holds an appointment with clearly defined roles. I expect each officer to function within the bounds of their mandate,” Mr Duale added.