Hospitals Struggle with Rising Cost of Medical Supplies

Hospitals in Kenya are increasingly sounding the alarm over soaring costs of medical supplies, with both public and private facilities calling the surge a serious threat to their financial sustainability. According to the Business Daily, The Nairobi Hospital raised some of its service rates—by as much as 61 percent for scans, beds, and critical services—citing significant supply chain disruptions that have pushed up prices of pharmaceuticals, surgical tools, and other essential supplies.
Part of the problem lies in rising import costs: because much of Kenya’s medical equipment and drugs are imported, the weakening Kenyan shilling has translated into higher bills for hospitals. These additional costs are being passed on to patients, putting upward pressure on hospital fees and straining relationships with insurers.
At the same time, many public hospitals are struggling to pay for supplies due to delayed reimbursements from the Social Health Authority (SHA). A recent survey showed that 81% of facilities cited late payments to suppliers as a major challenge, forcing some hospitals to rely on loans just to keep medical commodities in stock. Meanwhile, at the national level, KEMSA—the agency responsible for central procurement of health commodities—faces financial strain, with a low order-to-fulfillment rate (around 43%), hampering its ability to meet hospitals’ demand.
In the counties, these cost pressures are compounded by high supply chain risks. Senators have raised concerns that many county-run hospitals are grossly underfunded and experience frequent stock‑outs of essential commodities. Experts argue that unless the procurement and supply chain system is reformed—and capital injections made to KEMSA and hospitals—patients could face more service cuts, longer waits, or higher out-of-pocket bills.