PS Oluga says foreign donors pull out due to Kenya’s strong economy

Principal Secretary for the State Department of Medical Services, Ministry of Health, Ouma Oluga, has defended the withdrawal of foreign donors from Kenya’s health sector, saying it reflects the country’s growing economic strength rather than a failing system.

Speaking during an interview on Tuesday, August 26, 2025, Oluga said the Social Health Authority (SHA) is now focused on mobilising domestic resources to fill a funding gap left by donor exits.

“Our healthcare system has historically relied on donors for 35 per cent of financing. With agencies like USAID, FCDO, GIZ, and Danida winding down operations, we now have to bridge a gap of about Ks 82 billion,” he explained.

He emphasised that the withdrawals are not a reflection of Kenya’s health performance.

“They are leaving not because the country is bad, but because Kenya was rebased in 2021 from a poor country to a lower-middle-income country. We are now the sixth-largest economy in Africa, and donors are prioritising countries with greater financial need.”

Filling the gap domestically

Oluga urged Kenyans to understand that domestic contributions are now crucial for sustaining the health system.

He pointed out that in a global funding environment, countries with lower per capita income, like Malawi or the Democratic Republic of Congo, are more likely to receive donor support due to higher dependency.

“Now we have to take care of ourselves. This is why the 2.75 per cent contribution from salaries is necessary, it’s about sustaining our services without depending on foreign aid,” he said.

The PS stressed that Kenya’s economic growth has strengthened the country’s ability to self-finance essential services.

“Our economy has done well; we did not default on loans, and our growth has made us more stable. It is only proper that countries that can take care of themselves do so,” he added.

Oluga’s remarks come after the withdrawal of foreign aid by the United States government, which left Kenya with an annual financing gap of over Ksh78 billion in its health programs. 

A comprehensive policy brief released by the Ministry of Health on March 10 this year shows that the funding freeze has affected health programs worth Ksh78 billion.

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