NAIROBI, Kenya – Kenya’s healthcare market is hailed as one of the most advanced in Africa, second only to South Africa in terms of access and quality.
However, the launch of the ‘State of Kenya’s Health Market 2024’ report revealed that despite notable progress, critical challenges threaten the system’s long-term sustainability.
Speaking at the launch, Lyndon Marani, technical adviser for USAID’s Private Sector Engagement Programme, lauded Kenya’s achievements but warned of systemic risks.
“The Kenyan healthcare market has done very well, but there are cash flow challenges that threaten these gains,” he remarked.
Marani pointed to delays in payments to the National Hospital Insurance Fund (NHIF) as a key issue, noting that these delays create a ripple effect throughout the healthcare system.
“When hospitals aren’t paid on time, suppliers of drugs and equipment are left waiting, which ultimately affects patient care,” he added.
The report emphasized that universal health coverage (UHC) remains a top priority for Kenya, with the public and private sectors playing essential roles.
However, gaps persist, particularly in financing, as many counties still depend heavily on national government allocations and donor support.
Despite Kenya’s reputation for high-quality drug manufacturing in the East African region, Marani highlighted that only 50% of locally manufactured health products are being used.
“It’s perplexing. We are underutilizing our own production capacity while relying heavily on imports, even for medical fluids that our local manufacturers can supply,” he said.
This over-reliance on imports not only strains the healthcare market but also leaves a substantial portion of Kenya’s pharmaceutical potential untapped.
Marani urged for more robust coordination between local manufacturers and healthcare institutions to reduce the dependency on foreign supplies.
Margaret Njenga, CEO of Population Services Kenya, echoed concerns over the financing shortfall.
“We are yet to meet the Abuja Declaration target of allocating 15% of the national budget to health. Currently, we stand at about 11%, which is insufficient to meet the needs of Kenyans,” she said.
Njenga also underscored the importance of small, private clinics that provide 50% of healthcare services across the country.
“These clinics are often underfunded, yet they are vital to the healthcare system,” she explained.
Another challenge highlighted in the report is the poor management and use of healthcare data.
Marani noted that while both public and private healthcare institutions possess valuable data, the information is often underutilized for real-time decision-making.
This lack of communication, he explained, hampers Kenya’s ability to respond effectively to public health emergencies.
Both Marani and Njenga called for greater collaboration among stakeholders to address these challenges.
Marani emphasized that healthcare is interconnected with economic development, and a coordinated effort is essential for strengthening the system.
“By fostering collaboration, we can improve patient outcomes and position Kenya as a healthcare leader in the region,” he said.
Njenga advocated for a dual investment strategy, urging equal focus on both the public and private sectors.
“To ensure better healthcare access and quality for all Kenyans, we need to prioritize both sectors in terms of funding and resources,” she added.
However, the launch of the ‘State of Kenya’s Health Market 2024’ report revealed that despite notable progress, critical challenges threaten the system’s long-term sustainability.
Speaking at the launch, Lyndon Marani, technical adviser for USAID’s Private Sector Engagement Programme, lauded Kenya’s achievements but warned of systemic risks.
“The Kenyan healthcare market has done very well, but there are cash flow challenges that threaten these gains,” he remarked.
Marani pointed to delays in payments to the National Hospital Insurance Fund (NHIF) as a key issue, noting that these delays create a ripple effect throughout the healthcare system.
“When hospitals aren’t paid on time, suppliers of drugs and equipment are left waiting, which ultimately affects patient care,” he added.
The report emphasized that universal health coverage (UHC) remains a top priority for Kenya, with the public and private sectors playing essential roles.
However, gaps persist, particularly in financing, as many counties still depend heavily on national government allocations and donor support.
Despite Kenya’s reputation for high-quality drug manufacturing in the East African region, Marani highlighted that only 50% of locally manufactured health products are being used.
“It’s perplexing. We are underutilizing our own production capacity while relying heavily on imports, even for medical fluids that our local manufacturers can supply,” he said.
This over-reliance on imports not only strains the healthcare market but also leaves a substantial portion of Kenya’s pharmaceutical potential untapped.
Marani urged for more robust coordination between local manufacturers and healthcare institutions to reduce the dependency on foreign supplies.
Margaret Njenga, CEO of Population Services Kenya, echoed concerns over the financing shortfall.
“We are yet to meet the Abuja Declaration target of allocating 15% of the national budget to health. Currently, we stand at about 11%, which is insufficient to meet the needs of Kenyans,” she said.
Njenga also underscored the importance of small, private clinics that provide 50% of healthcare services across the country.
“These clinics are often underfunded, yet they are vital to the healthcare system,” she explained.
Another challenge highlighted in the report is the poor management and use of healthcare data.
Marani noted that while both public and private healthcare institutions possess valuable data, the information is often underutilized for real-time decision-making.
This lack of communication, he explained, hampers Kenya’s ability to respond effectively to public health emergencies.
Both Marani and Njenga called for greater collaboration among stakeholders to address these challenges.
Marani emphasized that healthcare is interconnected with economic development, and a coordinated effort is essential for strengthening the system.
“By fostering collaboration, we can improve patient outcomes and position Kenya as a healthcare leader in the region,” he said.
Njenga advocated for a dual investment strategy, urging equal focus on both the public and private sectors.
“To ensure better healthcare access and quality for all Kenyans, we need to prioritize both sectors in terms of funding and resources,” she added.
