Govt allocates Sh1.3tn for health, debt clearance

DODOMA: THE government has set aside a total of Sh1.3 trillion in the 2026/27 financial year to finance essential health services and settle verified arrears owed to suppliers, contractors, and local consultants.

Presenting the government’s budget estimates for the 2026/27 financial year in Parliament, Minister for Finance Ambassador Dr Khamis Mussa Omar said the allocations are aimed at strengthening service delivery, improving efficiency, and accelerating implementation of key development projects.

Of the total allocation, Sh681.7 billion has been earmarked for the health sector. The funds will be used to procure medicines, medical equipment, and laboratory reagents, as well as support the construction and renovation of health infrastructure across the country. Investment is expected to improve access to healthcare services and strengthen the capacity of hospitals and health centres nationwide.

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In addition, Sh667.3 billion has been allocated for the payment of verified domestic arrears owed to bidders, service providers, contractors, and consultants.

The Minister said settling these obligations is expected to enhance liquidity in the economy, stimulate business activity, and support broader investment growth.

“These measures are part of the government’s broader strategy to ensure the continuous implementation of development projects while maintaining strict discipline in the use of public funds,” he said.