The Kenyan government has released Sh22 billion from the Sh31.5 billion collected under the Social Health Insurance Fund (SHIF) to healthcare facilities across the country. This allocation aims to bolster healthcare service delivery and alleviate financial constraints that hospitals have been facing due to delayed payments. The disbursement comes amid growing concerns over pending bills that have threatened the stability of various healthcare providers.
According to a government despatch released by the National Development Implementation Committee (NDIC), the funds have been allocated among different categories of healthcare providers. Faith-based organizations have received Sh3.5 billion, public hospitals have been allocated Sh7.2 billion, and private healthcare providers have received Sh11.4 billion. These funds are expected to facilitate continued service provision and ensure that hospitals can operate without financial strain.
The NDIC emphasized that the disbursement was crucial for sustaining healthcare services, particularly for facilities that have been struggling with operational costs. The government’s initiative, Taifacare, which is responsible for registering beneficiaries under SHIF, has so far enrolled over 20.6 million Kenyans, with 16.6 million actively participating in the scheme. Additionally, four million people have undergone means testing to determine their eligibility for financial assistance under the program.
To address historical financial obligations, Taifacare has also settled Sh8.63 billion in outstanding NHIF debts. The NDIC has stressed the importance of efficiency in handling healthcare claims to ensure that funds are allocated effectively. As part of the government’s broader plan, Taifacare’s expansion is expected to improve access to quality and affordable healthcare for all Kenyans. Officials reiterated the government’s commitment to ensuring that financial constraints do not hinder the delivery of healthcare services to citizens.
The committee, chaired by Prime Cabinet Secretary Musalia Mudavadi at the Kenya School of Government, acknowledged concerns over pending bills in the healthcare sector. The government has reassured healthcare providers that efforts are being made to settle outstanding claims and prevent service disruptions in hospitals nationwide.
President William Ruto recently directed that all hospitals with claims of Sh10 million and below be fully paid. This decision, affecting 91% of all healthcare facilities contracted by the former NHIF, is intended to provide much-needed financial relief to struggling hospitals. The directive underscores the government’s intention to prioritize smaller hospitals and ensure uninterrupted service provision across the country.
Despite these interventions, faith-based healthcare providers have continued to raise concerns over delays in payments. Faith-based hospitals play a crucial role in Kenya’s healthcare system, especially in rural areas where medical facilities are scarce. Nairobi Diocese Archbishop Philip Anyolo recently warned that some faith-based hospitals might be forced to close due to non-payment of outstanding debts by the Social Health Authority (SHA). He emphasized that the failure to clear pending bills has severely crippled hospitals, making it increasingly difficult for them to operate efficiently.
In addition to faith-based institutions, private healthcare providers have also expressed frustration over the delayed payments. The Rural and Urban Private Hospitals Association of Kenya (RUPHA) has cautioned that prolonged delays could destabilize the country’s healthcare system. RUPHA Chairman Brian Lishenga noted that negotiations with the government regarding debt clearance have stalled, raising concerns about the sustainability of private health facilities. Private hospitals are currently owed approximately Sh30 billion, making the financial situation dire for many of them.
With the government pushing to streamline healthcare financing through SHIF, stakeholders are urging for greater accountability and efficiency in managing healthcare funds. The success of these reforms will largely depend on how well the government balances financial sustainability with the need to ensure Kenyans continue receiving essential healthcare services.
