US Funding Withdrawal Pushes Kenya’s Health Sector to the Brink
Kenya’s healthcare system is reeling from a massive financial shock as a new report reveals a Sh34.7 billion ($270 million) funding gap for essential medicines and health commodities. According to a study released on February 9, 2026, by the University of Nairobi’s Centre for Epidemiological Modelling and Analysis (CEMA), the crisis is primarily driven by the abrupt withdrawal of US government support, which has historically financed over 60% of Kenya’s external health budget. The report warns that the country’s total external health funding has plummeted from Sh126 billion in the previous financial year to just Sh54 billion for 2025/26.
The impact of this “funding cliff” is most severe in the treatment of infectious diseases. HIV programs face the largest shortfall, with a Sh14.5 billion deficit that threatens to trigger widespread treatment interruptions and drug resistance. Tuberculosis (TB) services are short by Sh13.8 billion, while malaria funding has been slashed from Sh4.25 billion to just Sh1.53 billion. Experts warn that behind these staggering numbers are millions of vulnerable citizens—including pregnant women and children—who now face a “catastrophe in the making” as antiretroviral stocks dwindle and childhood vaccine supplies become irregular.
The ripple effects extend far beyond the pharmacy shelves. The withdrawal of PEPFAR and USAID support has placed over 41,000 health workers at risk of losing their jobs, as county governments struggle to find the Sh47.8 billion annually needed to absorb these staff onto local payrolls. Furthermore, the digital infrastructure of the health sector is beginning to crumble; critical data systems used for disease surveillance and patient tracking are facing breakdowns due to a lack of maintenance funds previously provided by the US.
In response to the crisis, the Kenyan government has attempted to step in, with President William Ruto directing counties to absorb community health promoters. However, internal government budget cuts have complicated these efforts; the National Treasury recently slashed the Ministry of Health’s requested budget by 36%, leaving the sector with only a fraction of what is required to bridge the donor gap. As public hospitals like Kenyatta National (KNH) report acute shortages of even basic laboratory reagents and patient meals, the situation has become a “wake-up call” for Kenya to accelerate domestic health financing and reduce its life-and-death reliance on foreign aid.