Full Answer Section

Healthcare systems globally face persistent economic and financial challenges, driven by rising costs, evolving payment models, and the fundamental tension between providing universal access and ensuring financial sustainability. In Kenya, these challenges are particularly acute due to a mix of public, private, and donor funding, coupled with a large informal sector and a nascent health insurance landscape.

Rising Costs: The cost of healthcare continues to escalate due to several factors:

• Technological Advancements: New diagnostic equipment, sophisticated surgical procedures, and innovative pharmaceuticals, while improving outcomes, often come with hefty price tags. For instance, the acquisition and maintenance of advanced MRI or CT scanners are significant capital expenditures for Kenyan hospitals.
• Personnel Costs: Healthcare is a labor-intensive industry. Rising salaries, benefits, and the global shortage of skilled healthcare professionals (doctors, nurses, specialists) drive up operational expenses. Kenya, like many developing nations, faces a significant “brain drain” of its healthcare workforce, leading to higher costs for retaining talent.
• Prevalence of Chronic Diseases: The epidemiological transition means a growing burden of non-communicable diseases (NCDs) like diabetes, hypertension, and cancer. These require long-term, continuous care, placing sustained financial strain on individuals and the system.