The Kenyan government has taken a decisive step to reform the country’s health sector by eliminating the misuse of health funds previously managed by county governments. This transformation comes through a new funding model implemented by the Social Health Authority (SHA), which now facilitates direct payments to health facilities. Health Cabinet Secretary Aden Duale announced the shift during a session with the National Assembly Delegated Legislation Committee, emphasizing the impact of this change in ensuring more efficient healthcare delivery.
Previously, under the now-defunct National Health Insurance Fund (NHIF), funds were routed through county treasuries before reaching hospitals. This structure, according to Duale, often resulted in the diversion of funds meant for health services. Some counties reportedly used the money to cover unrelated expenses such as staff salaries, leaving hospitals under-resourced and unable to procure essential drugs and equipment. The new SHA system bypasses county governments altogether, transferring money straight to the hospitals based on patient numbers and services rendered.
Duale explained to the committee, led by Ainabkoi MP Samuel Chepkonga, that health facilities now receive funds directly on the 14th of every month. This regularity, he noted, allows hospitals to maintain a stable inventory of medical supplies, ensure operational continuity, and respond to patient needs more effectively. The primary objective of this overhaul is to stabilize the health sector by improving access to critical services and strengthening hospital management across the country.
In addition to funding reforms, Duale highlighted the significant growth in SHA registration, which has reached close to 22 million Kenyans. The Ministry of Health is preparing to launch a nationwide campaign to encourage further enrolment and counteract misinformation about the new health system. Duale emphasized the administration’s commitment to making SHA a central pillar of Kenya’s healthcare framework, noting its long-term potential to enhance healthcare accessibility and reliability.
Part of the SHA initiative aligns with the government’s broader ambition to digitize healthcare under the recently enacted Digital Health Act. This legislation aims to phase out the reliance on physical health records and identification cards. Once registered under SHA, patients will be able to walk into any public, private, or faith-based health facility and receive treatment seamlessly, without presenting physical documents. Duale stressed that this digitization will not only streamline service delivery but also help create an integrated and efficient healthcare system.
To further support vulnerable populations, the Ministry of Health is collaborating with various agencies to identify individuals in need of financial assistance to access SHA services. At the same time, the Kenya Medical Supplies Authority (KEMSA) is set to benefit from direct SHA payments, which will help it settle pending bills and enhance its ability to deliver vital medical supplies consistently.
By removing bureaucratic bottlenecks and increasing financial transparency, the government hopes to rebuild public trust in the healthcare system. Duale expressed optimism that this shift to direct payments will eventually be seen as one of the most transformative decisions undertaken by the Kenya Kwanza administration.
