The Health Cabinet Secretary Deborah Barasa has publicly countered statements made by Catholic Church bishops about significant outstanding debts owed to healthcare providers under the now-defunct National Hospital Insurance Fund (NHIF). Barasa’s response highlights the government’s stance on the matter, aiming to clarify what she described as “misleading, erroneous, and false” statements from the bishops regarding liabilities accrued under NHIF, which was restructured as part of a recent health financing overhaul in Kenya.
According to the bishops, the government owes substantial sums to hospitals, including those run by faith-based organizations. However, CS Barasa clarified that NHIF’s total outstanding debt to various healthcare facilities amounts to Ksh19 billion, accumulated over a period exceeding a decade. She assured stakeholders that the government is addressing these historical debts and reiterated that Ksh7.58 billion had already been raised for this purpose. Barasa noted that, through the Social Health Authority (SHA) the new government agency overseeing health financing a significant portion of the funds has been allocated to healthcare providers nationwide.
The SHA, which took over NHIF’s obligations in recent reforms aimed at strengthening health coverage and improving efficiency, has disbursed Ksh5.05 billion so far, including payments to over 8,800 healthcare facilities across the country. Out of this, faith-based facilities, which make up around 3.5% of contracted providers, received more than Ksh938 million. This group of providers, often heavily relied upon in underserved and remote areas, has continued to play a critical role in Kenya’s healthcare delivery, making the timely clearance of debts essential to sustaining operations.
CS Barasa assured healthcare providers that the remaining balance of Ksh2.5 billion will be disbursed by next week as SHA continues to reconcile outstanding claims, particularly those submitted in October and November 2024 under the restructured health fund. The ministry’s commitment to clearing these debts comes amid a national rollout of SHA, which is designed to streamline health financing and ensure affordable healthcare access for all Kenyans.
The Cabinet Secretary further called on the Catholic Church, a significant healthcare provider through its network of hospitals, to support the ongoing SHA rollout. She emphasized the importance of collaboration across sectors, particularly faith-based organizations, in achieving the government’s universal healthcare goals. “The Ministry remains committed to providing transparent, accessible, and affordable healthcare for all,” she said, calling for unity and a collective approach from all healthcare providers and stakeholders.
The government’s overhaul of NHIF into SHA has been part of broader health sector reforms aimed at improving the efficiency and transparency of healthcare financing. These changes align with President William Ruto’s administration’s vision for universal healthcare, which includes creating a more equitable system that addresses the financial burdens on both providers and patients. By transferring NHIF’s functions to SHA, the government intends to curb inefficiencies and better manage healthcare funds, a move Barasa hopes will gain widespread support from both public and private sector providers.
The defunct NHIF’s debt of Ksh19 billion is seen as a significant challenge to achieving these healthcare goals. However, by allocating nearly Ksh7.6 billion to address these outstanding liabilities and ensuring timely payments to service providers, Barasa reiterated the government’s commitment to fulfilling its obligations and fostering trust within the healthcare sector.
Barasa concluded by assuring all stakeholders of the Ministry’s intention to make SHA a transparent, reliable entity that can foster a sustainable healthcare system in Kenya. Her statement underscores the government’s dedication to working closely with healthcare providers, including religious and private organizations, to transform the health sector.
