Kenya signs US$1.69B health funding agreement with the US to strengthen healthcare through 2032

KENYA— Kenya and the United States have signed a landmark Strategic Objective Agreement (SOAG) for Health, which will provide US$1.686 billion (Sh218 billion) in U.S. funding, complemented by US$850 million in Kenyan co-investment, to strengthen the country’s health sector between 2026 and 2032.

Signed at the National Treasury Headquarters in Nairobi, the agreement introduces a new Government-to-Government (G2G) financing model designed to improve transparency, accountability and national ownership of donor-supported health programmes.

The signing ceremony brought together National Treasury and Economic Planning Cabinet Secretary John Mbadi, U.S. Chargé d’Affaires Susan Burns, Health Cabinet Secretary Aden Duale, senior government officials and representatives from both countries.

New government-to-government financing model

Under the agreement, funding will support key health institutions and priority programmes, including cancer care, the Kenya National Public Health Institute, the Digital Health Superhighway, and interventions targeting HIV, tuberculosis and malaria.

Speaking during the ceremony, Duale described the agreement as a major milestone in Kenya-U.S. relations, noting that it replaces the long-standing donor-funded model managed through implementing partners with direct cooperation between the two governments.

He explained that channeling resources through the National Treasury would improve financial oversight while allowing Parliament and relevant government agencies to monitor expenditure more effectively.

 According to Duale, the arrangement will enhance accountability by providing greater visibility into how development funds are allocated and spent.

Greater transparency and financial oversight

Mbadi welcomed the agreement, describing it as another important step in bilateral health cooperation. He noted that Kenya is the first country to adopt the new financing framework with the United States.

He explained that previous donor financing arrangements often limited the government’s visibility into funding commitments and programme implementation, making planning more difficult for both the National Treasury and the Ministry of Health.

The new model, he said, gives both institutions real-time access to expenditure data, enabling stronger financial management and accountability.

Mbadi also assured development partners that Kenya’s ongoing public finance reforms would support transparent and prudent management of the funds.

Supporting Health System Reforms

Burns commended the collaboration between the Ministry of Health, the National Treasury and the Office of the Attorney General in developing the agreement, describing it as the first strategic objective agreement under the new Kenya-U.S. Health Cooperation Framework.

She said the partnership reflects a shift from traditional donor assistance to a model based on shared responsibility and closer collaboration.

Burns added that the United States and Kenya have worked together for decades to combat HIV, tuberculosis and malaria, with HIV programmes alone helping save more than one million lives.

The agreement outlines shared priorities, financing arrangements, implementation targets and performance indicators to guide joint health initiatives over the next six years.

Priority areas include reforms at the Kenya Medical Supplies Authority (KEMSA), strengthening the Kenya National Public Health Institute, expanding digital health services, improving supply chain resilience, enhancing institutional capacity, and sustaining HIV, tuberculosis and malaria programmes.

The framework also supports Kenya’s Universal Health Coverage agenda under Taifa Care through stronger disease prevention, improved healthcare delivery, and continued investment in resilient health systems.

The signing ceremony was also attended by Principal Secretary for Medical Services Dr. Ouma Oluga, Principal Secretary for Public Health and Professional Standards Mary Muthoni, Social Health Authority Chief Executive Officer Dr. Mercy Mwangangi, Digital Health Agency Chief Executive Officer Eng. Anthony Lenayara, National AIDS and STIs Control Programme Director Dr. Andrew Mulwa, DPH-K Chairperson Brian Rettman, and other senior government officials from Kenya and the United States.