Health service pricing reforms in Kenya

Abstract

From 1966, for about 25 years, the Government of Kenya provided health services in public clinics and hospitals free of charge in accordance with its social policy (Republic of Kenya, 1989a). In the 1980s the Government began to review this practice, as its fiscal deficits worsened and as its ability to meet recurrent health expenditures of the public declined, The research information available to the Government at that time indicated that moderate user charges in public health facilities would alleviate the budgetary constraints of the ministry of health and, at the same time, rationalize the use of medical services without.significantly reducing clinic attendance (RE4\CR,1988; World Bank, 1987). In addition to change impetus from research, the Government was facing pressure from external donors to introduce market-oriented reforms in the health sector as a condition for development assistance