Kenya, U.S sign historic Ksh.207B health funding agreement

This is after President William Ruto on Thursday witnessed the signing of the agreement, which will see the U.S. Government invest 1.6 billion USD (approximately Ksh.207 billion) in Kenya’s health system over the next five years.

Unlike previous arrangements that used donor-led programs, the new framework directs U.S. funding straight into the Kenyan systems, including the Social Health Authority (SHA), Digital Health Authority (DHA), Kenya Medical Supplies Authority (KEMSA), IFMIS, the Ministry of Health, and the newly established National Public Health Institute.

"The new Cooperation Framework builds on these successes but introduces a transition model from donor-driven systems to government-led, self-reliant and sustainable national health systems, aligned with Kenya Vision 2030 and Universal Health Coverage (UHC) under the Bottom-Up Transformation Agenda (BETA) priorities," the statement read in part. 

"It also aligns with the America First Global Health Strategy (Sept 2025), which emphasises efficiency, reducing dependency, stronger bilateral agreements, and promoting American and Kenyan shared interests."

Under the new arrangement, Kenya and the U.S. will jointly manage investments meant to eliminate HIV, TB, malaria, strengthen outbreak response, and accelerate the transition to fully self-reliant national health systems by 2030.

The framework requires Kenya to progressively increase its own health budget, beginning with an additional Ksh.10 billion in the 2026–2027 financial year and scaling up to Ksh.50 billion by 2029–2030. 

The government is also expected to absorb more than 13,800 U.S.-funded health workers by 2028 and take full responsibility for key health commodities by 2031.

According to the Ministry of Health, the model is designed to strengthen Kenya’s national health sovereignty, reduce donor dependency, and enhance the efficiency and accountability of health spending. 

It will also support the expansion of national surveillance systems and emergency preparedness under the National Public Health Institute.

The latest development is part of President Ruto's trip to Washington, DC, to witness the signing of the Democratic Republic of the Congo (DRC)-Rwanda Peace Agreement. 

During the trip, Ruto also met with International Monetary Fund (IMF) Managing Director Kristalina Georgieva to discuss creating opportunities to expand Kenya's economic growth.