Industry Trend Analysis - Underlying Issues Will Limit Healthcare Sector Advancements - JUNE 2017
BMI View : Kenya ' s healthcare budget for 2017/18 marks a continuation in government spending towards the sector. Despite a robust economic growth outlook providing some support to government finances, Kenya ' s public healthcare sector will remain underfunded and access amongst the population will remain substandard. Risks will remain firm, as underlying healthcare inefficiencies threaten the dispersal of public funds and substantial healthcare improvements being implemented. Political and structural issues will add ambiguity to the status of Kenya ' s healthcare sector.
Kenya's state budget for the 2017/18 financial year has been approved, with an allocation of KEH61.6bn (USD606mn) for the healthcare sector, representing 3.8% of the total budget allocation which stood at KHS2.6trn (USD26.1bn). The allocation represents a minimal 2% increase on the allocation from the previous financial year when the budget was KES60.3bn (USD583mn). As is the case in the majority of Sub-Saharan Africa, the allocation yet again falls below the pledged 15% of national spending as part of the Abuja Declaration in 2001. Despite the health sector only representing a minimal proportion of state expenditure, healthcare spending (public and private) accounts for just over 5% of GDP - the average in SSA.
Health Sector Breakdown
|Healthcare Sector Spending Remains Stable|
|Kenya - Breakdown Of Government Spending, KESbn|
|Source: Kenyan Ministry Of Finance, Institute Of Economic Affairs|