The private sector plays a crucial role in Kenya's healthcare market, contributing to nearly 50 per cent of healthcare services, a report has revealed.

Dubbed ‘The State of Kenya’s Health Market 2024’, the report identifies several challenges within Kenya’s healthcare market, including fragmented coordination between public and private healthcare providers, limited data sharing, financial constraints and supply chain issues.

The report launched on Thursday indicates that despite improvements in healthcare service delivery, Kenya’s healthcare system remains heavily reliant on donor funding, with counties financially dependent on national health financing.

Based on an assessment across six key counties, the report highlights the challenges and opportunities that could reshape the country’s healthcare system while offering critical insights into Kenya's evolving healthcare market and outlining strategies to improve access to high-quality healthcare services.

Speaking at the launch on behalf of Health CS, Dr Martin Sirengo said the research is essential for both national and county governments, and it highlights the importance of public-private partnerships in reshaping our healthcare system.

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Sirengo emphasised the importance of addressing these challenges, particularly in maternal healthcare.

“With all these interventions, why has the maternal mortality ratio not come down? We need to find answers to this problem,” he remarked.

Dr Sirengo said the time has come for the public and private sector to establish strategic partnerships and sustainably deliver UHC.

He said with the government, private sector and development partners united in this vision, Kenya is poised to make significant strides in transforming its healthcare landscape and ensuring the well-being of all its citizens.

Sirengo’s sentiments were echoed by Dr Lyndon Marani, Technical Advisor for the USAID PSE Program who highlighted the importance of a robust legal and regulatory framework in driving the transformation of Kenya’s health sector.

He noted that the Kenya partnership and coordination framework offers a mechanism for managing the entire healthcare market.

Dr Marani, however, acknowledged the need for county-level engagement documents to address implementation challenges.

Marani also pointed to the Digital Healthcare Superhighway initiative, which aims to develop a digital ecosystem that will provide greater data availability, enabling decision-makers to better understand and strengthen the health market.

“Kenya’s health market is vast, covering a wide range of services and products. These counties were selected to help identify key opportunities for improving market efficiency and patient outcomes,” Marani said, referring to Nairobi, Mombasa, Kisumu, Nakuru, Uasin Gishu and Homa Bay.

Sylvia Wamuhu Chief of Party for the USAID PSE Program said there is a need for collaboration with the Ministry of Health to enhance the quality of services offered by private healthcare facilities.

“We are supporting private health facilities to enhance the competitive services they offer, ensuring that the quality of services provided meets the standards recommended by the Government of Kenya,” Wamuhu said.

She said one of the program’s key goals is to increase the visibility of locally produced health products.

“As Kenyans, we need to change the perception that locally manufactured goods do not meet quality standards, they do,” she stated.

In her remarks, Dr Margaret Njenga, CEO of Population Services Kenya, highlighted the critical role of the not-for-profit sector in Kenya’s healthcare market, working alongside public and private sectors to provide high-quality, affordable healthcare.

“We are bringing in the government, development partners, and the private sector so that patients can get high-quality services that are affordable,” she said.

She pointed out the financial constraints affecting healthcare facilities, despite Kenya’s progress.

“As much as we have made progress as a country, we are yet to reach the recommended Abuja Declaration of 15 per cent health financing. Right now, we are at 11 per cent, and much more needs to be done,” said Njenga.