[Treasury headquarters. Photo/Business Daily]
The Ministry of Health has received Sh54.9 billion in the 2017/2018 Financial Budget.
The budget also exempted medical equipment and apparatus used in specialised hospitals from taxation.
While reading the budget at parliament buildings, the National Treasury, Cabinet Secretary, Henry Rotich in parliament, Thursday, he said the allocation would go towards implementation of programs aimed at promoting health; addressing health needs of children, mothers and adolescents; enhancing social health protection; improving health infrastructure and strengthening norms, standards and health regulations.
He said the exemption of medical equipment and apparatus from VAT would motivate investors to put their resources in the health sector and address some of the challenges that the sector faces.
In his 2016 Budget speech, Rotich had proposed stringent measures to promote the health sector through tax exemption of goods used for construction of specialised hospitals with accommodation. The incentive had excluded medical equipment and apparatus making it unattractive to investors.
“In order to address the challenges in the health sector, I propose to extend the incentives earlier granted by exempting from VAT medical equipment and apparatus for use in the specialised hospitals,” he said as quoted by health.go.ke.
To improve immunisation coverage and increase access to ARVs, Rotich allocated Sh0.7 billion for vaccines , Sh0.6 billion to the National Aids Control Council and Sh5.0 billion for leasing of more medical equipment to bring specialised medical care closer to Kenyans.
He also allocated Sh0.9 billion to Free Primary Healthcare to expand access to affordable healthcare, Sh0.3 billion for the Health Insurance Subsidy Programme targeting the Elderly and Persons with Disabilities and Sh1.1 billion for the rollout of universal health coverage.
Subsequently, he also allocated Sh4.3 billion to support Free Maternal Healthcare programme noting that the number of women delivering in health facilities has increased from 660,000 to 1.2 million annually, with a drop of maternal deaths from 6,000 to 4,000 annually.
Doctors and Clinical Officers and Nurses’ internship programme also received a boost of Sh2.7 billion, Kenyatta National Hospital Sh9.0 billion, Moi Teaching and Referral Hospital Sh6.2 billion, Kenya Medical Research Institute Sh2.0 billion, Cancer Services Sh0.7 billion and Kenya Medical Training College Sh3.9 billion