REDUCE COST

No more VAT on colostomy bags, adult diapers and breast implants

KNH gets Sh18.1 billion, more than combined budgets of several counties

In Summary

•Treasury CS Ukur Yatani also said urine bags, artificial breasts, and ileostomy (small intestine) bags for medical use will also be VAT-exempt.

• Health spending has increased steadily since the 2013-14 budget to 2021-22,

Treasury CS Ukur Yatani at Parliament Buildings for 2022/23 Budget presentation
Treasury CS Ukur Yatani at Parliament Buildings for 2022/23 Budget presentation
Image: ENOS TECHE

The Treasury has proposed to exempt from VAT adult diapers and colostomy bags.

Treasury CS Ukur Yatani also on Thursday proposed that urine bags, breast implants and ileostomy bags (small intestine) for medical use will also be VAT exempt.

This will reduce the cost and improve access.

The total proposed health budget for 2022-23 is Sh146.8 billion, compared with Sh121.1 billion approved for 2021-22.

“Government has been progressively addressing the cost of healthcare in the country to expand access to quality and affordable healthcare services,” Yatani said.

Yatani also said medical oxygen supplied to registered hospitals would be exempt from VAT.

A colostomy bag, also called a stoma or ostomy bag, is a small, waterproof pouch used to collect waste from the body.

People need them after a health problem or when part of their colon is taken out because of a condition or disease. An ileostomy bag is similar but attached to the small intestine.

Colostomy bags are mostly imported and sold in select pharmacies and cost between Sh800 and Sh1,400 for reusable bags. Disposable ones go for Sh100 per bag.

On Jumia, a pack of 10 adult disposable diapers costs about Sh1,500.

Yatani also allocated more money to institutions under the Health ministry.

Kenyatta National Hospital got Sh18.1 billion, compared to the Sh15.3 billion it received in the FY 2021-22. 

Moi Teaching and Referral Hospital, which is Kenya’s second-biggest hospital, got Sh11.7 billion, compared to the Sh11.4 billion last year.

The network of the Kenya Medical Training Centres got Sh7.7 billion, slightly more than the Sh7.3 billion it got last year.

The Kenya Medical Research Institute got Sh2.9 billion this year, compared to Sh2.8 billion last year.

Yatani allocated Sh1.1 billion for the construction of Kenya National Hospital Burns and Paediatrics Centre and Sh1.2 billion for procurement of family planning and reproductive health commodities.

He allocated Sh1.3 billion to construct a cancer centre at Kisii Level 5 Hospital and Sh619 million to buy equipment for the National Blood Transfusion Services.

An analysis of Kenya’s spending since the 2013-14 budget to 2021-22 shows a steady increase in health spending.

It also reveals the country has been spending most of its health allocation on recurrent expenses such as salaries, rather than on development projects.

Health is currently financed by both the Ministry of Health and the county health departments.

In 2013-14, the Health ministry's allocation of Sh36 billion constituted 3.4 per cent of the national budget.

In 2014-15, the ministry was allocated Sh47 billion, or four per cent of the national budget.

In 2014-15, the Ministry of Health was allocated Sh47 billion and counties devoted Sh64 billion to health, raising the share to 7.5 per cent of that year’s budget.

The 2020-21 budget shows MoH received Sh114 billion, but it is not clear how much the counties spent on health.

(Edited by V. Graham)

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