President William Ruto on Thursday witnessed the signing of a landmark agreement with the United States that will inject $1.6 billion (Sh208 billion) into Kenya’s health sector over the next five years.

The deal makes Kenya the first African nation to enter a government-to-government (G2G) health funding partnership with the US. The funding will directly strengthen key state institutions including the Social Health Authority, KEMSA, IFMIS, the Ministry of Health, the Directorate of Health Accounts, and the National Public Health Institute.

US Secretary of State Marco Rubio praised Kenya’s Universal Health Coverage model, calling it “a model for emulation across the continent.” The agreement builds on a 25-year partnership during which the US has invested more than $70 billion in Kenya’s health programs.

President Ruto thanked the US for its support, saying the investment will boost efforts to modernise hospitals, ensure reliable supply of medical commodities, and expand health insurance coverage. He assured that the funds will be used “efficiently, effectively, and accountably.”

The new G2G model is expected to reduce dependency on donor-run programs, enhance accountability, and increase Kenya’s ownership of its health systems. It includes plans for the US to transition procurement to KEMSA by 2026 and support the absorption of over 13,800 health workers by 2028.

Kenya will also progressively increase its own co-financing of the health sector, aiming to fully take over funding for key health commodities and personnel by 2031.

The framework further introduces a data-sharing agreement that recognises health data as a national asset and requires strict compliance with Kenyan data-protection laws.

The partnership is expected to strengthen health security, digital systems, human resources, and supply chains—while positioning Kenya as a regional health hub aligned with Vision 2030 and the Bottom-Up Economic Transformation Agenda.