This archive report was first published on 22 November 2019.
On November 22, 2019, the Kenyatta National Hospital (KNH) announced plans to build a private health facility, sparking intense debate among Kenyans.
The proposal, which involves a public-private partnership, aims to improve healthcare services in Kenya by increasing competition and choice for patients.
However, the plan has been met with opposition from some quarters, with critics arguing that it will lead to profiteering and undermine the public healthcare system.
But experts argue that the proposal is a necessary step towards improving healthcare services in Kenya, citing the country's poor record in negotiating public-private partnerships.
Article 209 (4) of the Constitution of Kenya allows both levels of government to impose charges for services they provide, making it possible for the KNH to implement the proposal.
The KNH has stated that the profits from the private facility will be used to support the rest of the hospital, making it a humane and savvy move to subsidize patients who cannot afford private medicine.
Kenya has a vast industry of private medicine, and the entry of a new hospital of this size would expand choice for all patients, moderate costs, and reduce price gouging.
The proposal also creates an interesting experiment, allowing the board of KNH to compare the performance of the two facilities and decide what measures to institute to raise the performance level of the public-funded one.
Despite the criticism, experts argue that the proposal is a necessary step towards improving healthcare services in Kenya, and that the country needs more private hospitals to increase competition and choice for patients.
Kwame Owino, the chief executive officer of the Institute of Economic Affairs (IEA-Kenya), a public policy think tank based in Nairobi, is a strong advocate for the proposal.
