The Nakuru Municipal Council (NMC), in Kenya, is concerned with the financial sustainability of its services and is considering increasing prices. The Council is currently charging for services but these fees are not based on the cost of providing services. Before changing its prices, the NMC wanted information on its costs because another strategy to improve financial sustainability is to decrease the costs of producing various services. Information on current costs of services can also help the NMC to determine ways to reduce these costs. The NMC, in collaboration with the Africa OR/TA II project and Family Health International, conducted a study to measure the recurrent financial costs of providing visits for different types of services, including family planning, sexually transmitted infections, antenatal care, child health, tuberculosis, and outpatient treatment. According to this report, the cost analysis focused on recurrent costs (drugs, supplies, labor, overhead). Capital costs were not included as it would be difficult to cover even recurrent costs.
Thompson, Andrew, Barbara Janowitz, and Julie Solo. 1999. "The cost of health services at the facilities level of the Nakuru Municipal Council, Nakuru, Kenya," Africa OR/TA Project II. Nairobi: Population Council.
Africa OR/TA Project II