Medical Services Agreement (Kenya)

A Medical Services Agreement in Kenya sets out the terms on which a service provider performs work and is paid by the client.

The Health Act No. 21 of 2017, administered by the Ministry of Health, establishes the right of every person in Kenya to the highest attainable standard of health under Article 43 of the Constitution of Kenya 2010, and sets out the obligations of health service providers. County health legislation under the County Governments Act No. 17 of 2012 also governs the licensing of health facilities at the county level, and a Medical Services Agreement that involves the operation of a health facility must reference the relevant county health facility licence under the Health Act No. 21 of 2017.

The Nursing Council of Kenya (NCK), established under the Nursing Act Cap. 257, registers nurses and midwives. The Kenya Medical Laboratory Technicians and Technologists Board (KMLTTB), established under the Medical Laboratory Technicians and Technologists Act No. 10 of 1999, registers laboratory professionals. A Medical Services Agreement that engages a team of healthcare professionals must verify the registration status of each professional with the relevant regulatory board.

The Kenya Revenue Authority (KRA) requires medical practitioners operating as sole practitioners or through professional service firms to register for income tax under the Income Tax Act Cap. 470. Withholding Tax at 5% applies to professional fees paid by corporate clients to medical practitioners under Section 35 of the Income Tax Act Cap. 470. The Value Added Tax Act No. 35 of 2013, Second Schedule, exempts medical and dental services from VAT — meaning medical practitioners do not charge VAT on clinical services. However, non-clinical services provided by medical professionals — such as medical reporting, expert witness fees, or occupational health consultancy — may attract VAT depending on their characterisation.

The Data Protection Act No. 24 of 2019, administered by the Office of the Data Protection Commissioner (ODPC), imposes strict obligations on healthcare providers processing patients' medical records, which constitute sensitive personal data under Section 2 of the Act. A Medical Services Agreement must contain data protection clauses confirming that patient health data is processed lawfully, stored securely, and shared only with authorised parties.

The legal framework governing the Medical Services Agreement (Kenya) in Kenya draws on several key statutes and regulatory bodies. Under the Companies Act No. 17 of 2015, the Registrar of Companies at the Office of the Attorney General maintains the register of Kenyan companies. Section 3 of the Law of Contract Act (Cap. 23) governs contractual obligations. The Competition Authority of Kenya (CAK) enforces the Competition Act No. 12 of 2010. The Kenya Revenue Authority (KRA) administers corporate tax under the Income Tax Act (Cap. 470). The High Court of Kenya has unlimited original jurisdiction under Article 165 of the Constitution of Kenya 2010. Parties executing a Medical Services Agreement (Kenya) in Kenya should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Medical Practitioners and Dentists Act Cap. 253 sets the foundational requirements.

A Medical Services Agreement in Kenya is required whenever an organisation or individual engages a licensed medical practitioner, clinic, or hospital to provide clinical or occupational health services on an ongoing, retainer, or project basis, where the terms of engagement, professional obligations, and liability must be clearly documented.

A Medical Services Agreement is needed when a corporate employer engages a licensed occupational health physician registered with the KMPDC to provide pre-employment medical examinations, periodic health surveillance, and workplace injury assessments under the Occupational Safety and Health Act No. 15 of 2007 (OSHA). The Directorate of Occupational Health and Safety Services (DOHSS) under the Ministry of Labour requires employers in hazardous industries to conduct periodic medical examinations of employees, and a written agreement with the examining physician is a practical compliance measure.

A Medical Services Agreement is required when a healthcare management company or hospital group engages a specialist physician — cardiologist, orthopaedic surgeon, or oncologist — on a sessional or locum basis to provide clinical services at its facility. The KMPDC requires that a registered practitioner holding admitting rights at a hospital be subject to a formal clinical practice agreement.

A Medical Services Agreement is needed when a medical insurance provider (MIP) licensed by the Insurance Regulatory Authority (IRA) contracts with a clinic or hospital to become a panel provider under a group medical scheme. The network provider agreement specifies the services covered, the fee schedule, the claims process, and quality standards.

A Medical Services Agreement is required when a county government or national government ministry engages a private medical clinic to provide outreach health services, immunisation campaigns, or maternal health services to a defined population under a service-level agreement authorised under the Public Procurement and Asset Disposal Act No. 33 of 2015.

A Medical Services Agreement is needed when an NGO operating in Kenya contracts a licensed medical team to provide health services in a community health programme, confirming that the practitioners' KMPDC registration is current and that the service obligations are clearly defined to protect both the NGO and the beneficiary communities.

Parties in Kenya should prepare a Medical Services Agreement (Kenya) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under the Companies Act No. 17 of 2015, the Registrar of Companies at the Office of the Attorney General maintains the register of Kenyan companies. Section 3 of the Law of Contract Act (Cap. 23) governs contractual obligations. The Competition Authority of Kenya (CAK) enforces the Competition Act No. 12 of 2010. The Kenya Revenue Authority (KRA) administers corporate tax under the Income Tax Act (Cap. 470). The High Court of Kenya has unlimited original jurisdiction under Article 165 of the Constitution of Kenya 2010. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.

A Kenya Medical Services Agreement under the Medical Practitioners and Dentists Act Cap. 253 and the Health Act No. 21 of 2017 must contain the following essential elements to be enforceable and professionally sound.

Parties and Professional Credentials: Full legal names and addresses of the contracting organisation (the "Client") and the medical practitioner or facility (the "Provider"); the Provider's KMPDC registration number and current annual practising certificate number; and, where applicable, the health facility licence number issued by the county government under the Health Act No. 21 of 2017. Verifying the Provider's registration on the KMPDC online portal before signing is strongly advised.

Scope of Clinical Services: A precise description of the medical services to be provided — general practice consultations, specialist clinical assessments, occupational health examinations, surgical procedures, dental treatments, laboratory investigations, or telehealth consultations — including the clinical setting (facility, outreach, or telehealth), frequency, and any service standards or protocols the Provider must observe.

Practitioner Availability and Substitution: The Provider's scheduled availability (days, hours, response time for emergencies), whether locum or substitute practitioners may be deployed by the Provider in the primary practitioner's absence (and if so, the requirement that any substitute be KMPDC-registered), and the notification procedure for unavailability.

Fees and Payment: The professional fee structure — whether a fixed monthly retainer, a per-consultation fee, a per-procedure fee, or a sessional rate — stated in Kenya Shillings (KES); the billing and invoicing procedure; Withholding Tax obligations under Section 35 of the Income Tax Act Cap. 470; and the payment timeline. Medical services are VAT-exempt under the Second Schedule of the Value Added Tax Act No. 35 of 2013.

Clinical Standards and Protocols: The Provider's obligation to observe KMPDC clinical guidelines, national clinical protocols issued by the Ministry of Health, Evidence-Based Medicine (EBM) standards, and any internal clinical protocols of the Client facility. Compliance with the Health Act No. 21 of 2017 patient rights provisions — including informed consent, confidentiality, and dignity — must be expressly required.

Informed Consent and Patient Rights: A statement confirming that the Provider obtains valid informed consent from each patient before any procedure, in compliance with the KMPDC Professional Code of Conduct and Section 6 of the Health Act No. 21 of 2017. The Patient's Bill of Rights under the National Hospital Insurance Fund Act must also be observed.

Medical Records and Data Protection: The Provider's obligations for maintaining accurate and complete medical records; the Client's right to access records for audit and quality assurance purposes; and data protection obligations under the Data Protection Act No. 24 of 2019 — including secure storage, purpose limitation, and prohibition on sharing patients' sensitive medical data without consent.

Malpractice Insurance and Indemnity: The Provider's obligation to maintain professional indemnity insurance at a minimum coverage level specified in the agreement; the indemnity arrangements through the Medical Defence Union or equivalent body; and the parties' respective liability for clinical negligence claims.

Confidentiality: A mutual confidentiality clause protecting patient health data as sensitive personal data under the Data Protection Act No. 24 of 2019, and protecting the Client's proprietary clinical protocols and business information.

Termination and Regulatory Sanctions: Events of termination — expiry of the KMPDC practising certificate, suspension or cancellation of registration by the KMPDC Disciplinary Committee under Section 22 of the Medical Practitioners and Dentists Act Cap. 253, material breach of clinical standards, or insolvency of either party. The notice period for termination and the transition obligations on termination must be clearly stated.

Governing Law and Dispute Resolution: The agreement is governed by the laws of Kenya. Clinical disputes may involve the KMPDC Disciplinary Committee; contractual disputes may be referred to arbitration under the Arbitration Act No. 4 of 1995 or to the High Court of Kenya. The forms-legal.com Kenya Medical Services Agreement template includes all mandatory provisions required under the Medical Practitioners and Dentists Act Cap. 253 and the Health Act No. 21 of 2017.