Healthcare cost up 3.3pc on rising prices for essential services

 Patients at the waiting bench at Dagoretti Sub County Hospital Mutuini on January 31, 2025. 

Photo credit: Wilfred Nyangaresi | Nation Media Group

The cost of healthcare has risen by more than three percent in a year, driven by rising fees, drugs prices, insurance premiums, and hospital treatment, making it increasingly difficult for families to afford quality services.

Latest data from the Kenya National Bureau of Statistics (KNBS) shows that healthcare costs increased by 3.3 percent between January 2024 and January 2025, with a 0.4 percent increase between December 2024 and January 2025.

This continued upward trend in medical costs is reflected in the Consumer Price Index (CPI), which tracks changes in the cost of goods and services.

The sharp rise highlights a worrying trend where the cost of healthcare is rising much faster than that of other essential goods and services.

For many low and middle-income families, this situation is forcing them to make difficult choices of either delaying treatment, reducing medication, or opting for less effective alternatives, all of which can pose long-term risks to public health and economic productivity.

“A 3.3 percent increase in healthcare costs over a year may not seem particularly large compared to other potential price increases, but it is still significant when considering household budgets. For many households, especially those on low to middle- incomes, healthcare is already a significant expense. Even a modest increase in medical costs can have a noticeable impact on their financial situation,” Aden Mohamud, a medical doctor said.

“This increase, compounded over time, could place an additional burden on households struggling to afford necessary healthcare, especially if wages are not rising at the same rate and if this increase comes in the context of already high medical expenditure,” he added.

Healthcare costs cover a range of expenses, including medical services such as doctor visits, hospital stays, and diagnostic tests, as well as prescription and over-the-counter medicines, vaccines, and medical supplies.

Hospital and surgery costs include inpatient care, surgical procedures, and specialised treatments, which vary depending on the type of hospital.

Health insurance premiums, which cover monthly or annual payments for health plans, often increase with the level of coverage and the individual's medical history. Emergency services, such as ambulance transport and emergency care, are usually more expensive than routine medical expenses.

In addition, costs can include medical equipment such as wheelchairs, preventative services such as check-ups and screenings, and specialised treatments such as physiotherapy, dental care, and alternative medicine.

The rising cost of healthcare comes at a time when Kenya is facing challenges in the transition from the defunct National Health Insurance Fund to the Social Health Authority (SHA).

Delays in implementation, funding concerns, and uncertainty among healthcare providers have left many Kenyans concerned about the affordability of medical services.

Although SHA was designed to improve efficiency and expand coverage, gaps in implementation have created confusion and fears that costs will continue to rise, further straining household budgets.

This is despite the government's commitment to achieving Universal Health Coverage (UHC), which aims to ensure that all Kenyans have access to essential health services without financial hardship.

“The ministry urges all Kenyans to register for SHA to ensure access to quality healthcare services without financial hardship,” said Deborah Barasa, Cabinet Secretary for Health.

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