As part of the government’s Taifa Care strategy, the Ministry of Health adopted the Global Budget Model as of January 2025 to enhance healthcare financing.
This model allocates a predetermined budget to healthcare facilities based on anticipated patient volumes and service demand, ensuring equitable distribution of resources.
Unlike the previous capitation-based model, which provides a fixed payment per patient, the Global Budget Model offers greater flexibility by allowing hospitals to manage resources based on real-time needs.
While issuing a media update on the Taifa care, the Ministry of Health has noted that this approach enables facilities to optimise service delivery, improve efficiency, and enhance financial predictability while maintaining accountability.
Under this system, the ministry added that the healthcare providers will be reimbursed based on the actual number of cases and services rendered, as verified through periodic returns submitted to the Ministry.
“This shift ensures that funding is aligned with the true cost of care, reducing financial constraints that previously affected service provision,” the statement noted.
The move to a Global Budget Model according to the ministry, is in line with international best practices and is designed to ensure sustainable healthcare financing.
“This shift allows healthcare facilities to plan more effectively, allocate resources based on actual service needs, and avoid over-reliance on per-patient payments and will therefore be particularly beneficial for rural and county-level hospitals, where service demands fluctuate based on population needs.
This transition was a key component of the Kenya Kwanza Manifesto’s commitment to Universal Health Coverage, ensuring that PHC services remain accessible, well-funded, and sustainable.
The Ministry says that it has put in place monitoring frameworks to assess the impact of the Global Budget Model, with periodic evaluations to ensure that it meets the healthcare needs of Kenyans.
“By strengthening Primary Health Care, the government is not only reducing the burden on higher-level curative services but also promoting preventive and promotive health measures, which are crucial for long-term health system sustainability.
The Ministry has urged all stakeholders, including county governments and development partners, to support this transition and ensure that PHC remains a cornerstone of Kenya’s healthcare system.
Meanwhile, on payment for Primary Health Care (PHC) services, the Ministry of Health says that between October 1, 2024, and December 31, 2024, the government utilised a capitation-based model to fund Primary Health Care (PHC) services under SHA.
Under this model, healthcare facilities received a fixed amount per enrolled beneficiary, ensuring that routine outpatient and preventive services were predictable and adequately funded.
Capitation was particularly effective in stabilising financing for community health initiatives, immunizations and maternal and child health services.
By Wangari Ndirangu
