Kenya’s healthcare sector is set for a significant upgrade following the signing of a Sh1.8 billion grant agreement between the government and China.
The agreement was signed on Thursday morning at the Treasury Building by National Treasury and Economic Planning Cabinet Secretary John Mbadi and Chinese Ambassador to Kenya Guo Haiyan.
According to the Treasury, the funds will be used to modernize key hospitals across the country, improving healthcare infrastructure and enhancing service delivery.
The healthcare facilities set to benefit from the grant include Londiani Referral Hospital, Baringo County Referral Hospital, Kilifi Hospital, Misikhu Hospital, Bildad Kagia Hospital, and Kaimosi Farmers Training College.
CS Mbadi expressed appreciation for China’s continued support, emphasizing that the partnership underscores the strong diplomatic and economic ties between the two nations.
This funding comes at a critical time as Kenya grapples with a growing financial crisis fueled by heavy domestic and external borrowing. Earlier this week, Mbadi acknowledged that the country must increasingly rely on internal resources rather than foreign aid, as major donors, including the United States, have scaled back funding.
“Our fiscal space is extremely limited. The U.S. has already stopped funding us, and we expect the EU to follow suit,” Mbadi noted on Tuesday. “This is one of the most challenging periods for Kenya. We took on substantial loans in the past, and now we are facing the consequences as repayment obligations peak.”
Kenya’s debt burden currently stands at approximately Ksh.10 trillion, with nearly two-thirds of the country’s annual revenue allocated to servicing debt. This has left critical sectors such as healthcare and education severely underfunded.
