The government has announced a comprehensive plan to settle the KSh33 billion debt owed to healthcare providers by the now-defunct National Health Insurance Fund (NHIF). In a statement issued from State House, Nairobi, on Tuesday, the government outlined measures to clear pending claims and ensure a smooth transition to the Social Health Authority (SHA).
The NHIF was officially wound up on November 22, 2024, after accumulating massive debts, which affected service delivery in public, faith-based, and private hospitals. To address the crisis, the government has committed to a structured payment plan:
- Full payment for smaller claims – Hospitals with claims of up to KSh10 million, representing 91% of NHIF-contracted facilities, will receive immediate payments.
- Verification for larger claims – The remaining 9% of hospitals, with claims exceeding KSh10 million, will undergo a verification process that should be completed within 90 days before payments are made.
- Establishment of a verification committee – The Cabinet Secretary is expected to gazette the committee within a week to oversee the verification process.
Assurance on Taifa Care and Universal Health Coverage
The government has also reiterated its commitment to providing Universal Health Coverage (UHC) through Taifa Care, assuring Kenyans that any challenges in its implementation are being addressed.
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Under the Social Health Authority, all current claims will be processed within a month. Since its inception on October 1, 2024, SHA has already disbursed KSh18.2 billion in payments.
“The government is fully committed to providing Universal Health Coverage to every Kenyan without discrimination,” the statement read in part.
The NHIF replacement under SHA is part of the government’s broader strategy to streamline healthcare financing and improve service delivery under the UHC program.