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State firms, referral hospitals hit by Sh20bn cash gap
Medical Services Principal Secretary Dr Ouma Oluga addresses journalists during the marking of World Cancer Day at Kenyatta National Hospital on February 4, 2026.
Some 10 State agencies, including five national referral hospitals, have been hit by a funding shortfall of Sh19.8 billion, impacting payment of staff salaries, pension, gratuities, and statutory deductions.
The State Department for Medical Services said that the National Treasury's decision to impose across-the-board budget cuts of between 30 percent and 40 percent on the net recurrent budget of the public agencies has affected payment of personnel emoluments.
