Kenya's Health Market Assessment Reveals Critical Gaps and Reform Opportunities

By John Toris

Nairobi, September 19, 2024 — A new report titled 'The State of Kenya's Health Market 2024' was launched today, unveiling significant findings that could transform the country’s healthcare landscape. Commissioned by the Ministry of Health in collaboration with the USAID Private Sector Engagement (PSE) Program, the assessment offers a detailed analysis of Kenya's health system across six priority counties: Nairobi, Kisumu, Uasin Gishu, Homabay, Nakuru, and Mombasa.

PHOTO: USAID PSE Program Officials together with the Ministry of Health Officials pose for a photo during the launch of 'The State of Kenya's Health Market, 2024' report in Nairobi 

Key findings indicate a fragmented healthcare coordination structure and limited data sharing between public and private sectors, hampering effective planning and service delivery. Despite allocating 11% of its budget to health, the system remains heavily reliant on donor funding, while local manufacturing capacity remains underutilized amid increasing demand.

The report emphasizes urgent reforms, recommending improved governance to enhance collaboration across the health market and suggesting the implementation of a unified quality policy to ensure equitable care. As Kenya strives for Universal Health Coverage (UHC), these insights are vital for shaping a sustainable health ecosystem. The report calls for a shift from managing public services to overseeing the broader healthcare landscape, ensuring better alignment between public and private contributions to enhance patient outcomes.

Speaking during the launch, Sylvia Wamuhu, Chief of Party for the USAID PSE Program, emphasized the critical role of the private sector in Kenya's healthcare system. "With 50% of Kenya's population seeking health services from private providers, we cannot afford to overlook this sector," she said. Wamuhu stressed the importance of collaboration, stating that effective partnerships with the Ministry of Health are essential to enhance healthcare delivery and ensure that all Kenyans receive the services they need. This approach aims to integrate private and public health efforts for a more comprehensive healthcare system in Kenya.

Jane Ngugi, USAID Health Official, further emphasized the vital role of the private sector in providing healthcare services across the nation. "When we talk of the private sector, we are talking about the pharmacy that is next to your home," Ngugi stated. She highlighted that small clinics, often run by just one or two individuals, contribute significantly to healthcare access. "These clinics and pharmacies provide up to 50% of healthcare services in this country," she noted.

Ngugi urged for greater investment in these smaller entities, stating, "We must put adequate resources in the private sector so that patients can receive the highest quality of services." She pointed out that when combining for-profit entities with faith-based organizations, they account for half of the healthcare services available, reinforcing the necessity to support this crucial sector alongside public health initiatives.

PHOTO: The display of  'The State of Kenya's Health Market, 2024' report in Nairobi

The USAID Private Sector Engagement Program is a 5-year initiative (2023-2028) funded by USAID and implemented by Population Services Kenya (PS Kenya), Halcyon Consulting, and the Kenya Healthcare Federation. The program’s main objective is to improve health outcomes by supporting the private sector to increase the number and quality of products and services provided through the sector and to support local manufacturing of health products.

The Program focuses on three main areas: increasing the number and quality of services offered through the private sector, improving the quality and efficiency of private health sector products and services, and supporting local manufacturing of health products as a key pillar in achieving Universal Health Coverage (UHC). The program is active in priority counties including Nairobi, Mombasa, Kisumu, Nakuru, and Uasin Gishu, while also providing technical assistance in Homabay, Nyamira, Siaya, Kakamega, Vihiga, Taita Taveta,Turkana, and Trans Nzoia counties. The State of the Health Market Report 2024, conducted by Halcyon Consulting, provides insights into the healthcare market, further informing the program’s activities.

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