Ruto ends hospital equipment purchases in shift to smart care

President Ruto with county governors during the flag-off of medical equipment under the National Equipment Services Project at State House Nairobi on Thursday, August 7. [PCS]

President William Ruto has launched a new medical equipment programme that removes the need for public hospitals to buy machines, shifting Kenya’s health system to a fee-for-service model backed by the Social Health Authority.

Speaking at State House, Nairobi on Thursday, August 7, Ruto said the National Equipment Services Project (NESP) will allow hospitals to access diagnostic and treatment tools without any upfront payments, as the government will reimburse service providers for each use.

“Our private sector partners will bear the cost of installation, servicing and maintenance, placing no financial burden on public health facilities,” said Ruto.

The model replaces the Medical Equipment Scheme, which he noted demanded large capital outlays and lacked proper service contracts, often resulting in broken or underused machines in hospitals.

So far, 45 counties have signed the Intergovernmental Participatory Agreement, a key requirement to activate the new programme.

Since June, more than 60,000 medical services have been delivered in 29 health facilities across 18 counties under NESP. Ruto described the programme as a move from a fragmented procurement model to a smarter, service-led health delivery system.

“This cost-effective and sustainable model guarantees that equipment is not only installed but also consistently maintained, ensuring continuous and reliable service,” he observed.

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Medical supplier Sunview Medipro International, one of the vendors selected under NESP, delivered 14 modern CT scan machines to 14 counties on Thursday. From just five earlier installations, the firm has completed 3,000 scans in the past month.

Sunview and other vendors under the initiative are tasked with supplying, installing and maintaining equipment in public hospitals, with the government covering costs based on pre-agreed Social Health Authority tariffs. Counties are not required to make any advance payments.

Ruto explained that the fee-for-service model differs from other systems such as capitation, where providers receive a fixed payment per patient regardless of how many services are rendered. In contrast, NESP ensures payment is tied to actual delivery of care.

The programme also guarantees 95 per cent equipment uptime, continuous training and skills transfer for health workers, supply of reagents and consumables, regular maintenance, and timely replacement of faulty or outdated machines.

These measures, the President said, are designed to reduce referral delays, improve diagnosis and treatment outcomes and reinforce the country’s Universal Health Coverage goals.

Ruto also flagged off the delivery of two ultrasound machines, 30 dialysis units and several digital X-ray systems to various county hospitals.

“In the next two months, we expect to deploy an additional 58 digital X-rays, 65 ultrasound machines, 19 CT scanners, 100 theatre equipment and 100 laboratory systems,” he added.

Alongside equipment rollout, the government is also building a national digital backbone for health. So far, 25.2 million Kenyans have registered with the Social Health Authority, which has contracted more than 11,000 hospitals, clinics and health centres.

Since October 2024, Ruto said, the Social Health Insurance Fund and the Primary Healthcare Fund have paid a combined total of Sh56.4 billion for services under the new health financing structure.

“This digital transformation is giving Kenyans faster, more transparent and more dignified access to healthcare,” he noted.

He explained that the system also helps prevent fraud and improves efficiency in public health facilities.

Governors Ahmed Abdullahi (Wajir), Mutahi Kahiga (Nyeri), Ken Lusaka (Bungoma), Anne Waiguru (Kirinyaga), Nathif Jama (Garissa) and Cecily Mbarire (Embu) attended the launch.