Data-driven decision-making is essential for the effective allocation and use of health resources, significantly reducing inefficiencies and improving health outcomes in Africa and other developing countries, researchers say.

Dr David Njuguna, a seasoned health economist, believes that despite substantial investments in health over the years, improvements in health outcomes have not been commensurate.

Persistent high disease burdens are influenced by demographic, economic, and socio-cultural factors.

To address these challenges, Dr Njuguna has called for both technical and allocative efficiency in health financing, which involves maximising the impact of health expenditures while minimising wastage and corruption.

"Data helps us understand and address health inequities strategically," Dr Njuguna said. 

"It aids in the effective allocation and utilisation of health resources, ensuring that funds are used where they are needed most," he added.

Regarding high out-of-pocket expenditures, which deter access to healthcare, he advocates for converting these expenditures into prepaid mechanisms to reduce financial barriers and improve access to care. 

He highlights the importance of transitioning towards domestic resource mobilisation to create sustainable health financing systems.

"High out-of-pocket expenditures are a significant barrier to accessing healthcare," the expert noted.

By shifting to prepaid mechanisms, he said “we can reduce these barriers and ensure more equitable access to healthcare services."

Kenya’s Health Ministry received an allocation of Sh141.2 billion in the 2023/2024 budget. 

The allocation represents 11 percent of the total annual budget, down from Sh146.8 billion in the 2022/23 fiscal year.

The country has consistently fallen short of its allocation to the health sector as per the Abuja Declaration. 

In April 2001, heads of state of African Union countries pledged to allocate at least 15 percent of their annual budget to improve the health sector.

Senior Research and Policy Analyst at African Institute for Development Policy (AFIDEP) Jackson Otieno said as more money is allocated to the health sector, parliamentarians need to strengthen their oversight role.

“This oversight role will particularly look at efficiency gains and value for money,”Dr Otieno said.

The presentation also underscored the need for a robust primary healthcare (PHC) approach. 

Investing in PHC can significantly improve health outcomes and save lives.

Dr Njuguna used Kenya as an example to show how data-driven decisions have led to increased health budgets, better health insurance schemes, and reduced healthcare costs.

"Kenya's experience demonstrates the effectiveness of data-driven decision-making in the health sector," he explained. 

"Increased investment in primary healthcare has not only improved health outcomes, but also shown economic benefits."

Recommendations for sustainable health financing include increasing public investment in health, developing pooling mechanisms to reduce out-of-pocket spending, and enhancing efficiency and coordination among stakeholders.

Dr Njuguna also called for transition plans as development partners exit, ensuring that public investment fills the gap.

"Increasing public investment and improving coordination among stakeholders are key to sustainable health financing," he said.

“We must also plan for transitions as development partners reduce their support, ensuring that public funding takes over.”

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