Kenya’s Ministry of Health mandates NHIF to settle US$216.9M debts before October

KENYA—The Ministry of Health, has mandated the National Health Insurance Fund (NHIF) to clear all its outstanding debts to service providers before its scheduled closure in October. 

Health CS Susan Nakhumicha disclosed that the NHIF’s debts, currently standing at about Sh28 billion (US$216.9B), have significantly impacted service providers due to unpaid premiums.

The NHIF services were extended last week until the new Social Health Authority (SHA) is ready. Consequently, NHIF extended contracts with about 8,000 health facilities until the end of September. 

As of May 31, 2024, the Fund owed co-insurers medical claims of KSH20 billion(US$154.9M) and KSH9.3 billion(US$72M).

The Ministry of Health and the authority have implemented several measures to ensure the claims are settled before the end of the transition. 

They are pursuing unpaid premiums by government ministries, departments, and agencies through the National Treasury. 

The board has also reduced administrative expenditures and skewed payments to settle claims.

Last week, acting CEO of Social Health Authority Elijah Wachira wrote to contracted health facilities, telling them to continue providing services under NHIF terms until the end of September. 

This is to ensure full compliance with the provisions of the SHIF Act, as directed by the Cabinet Secretary.

 CS Nakhumicha told the Senate Health Committee that 8,409 health facilities will provide health services under SHA. These include 494 public health facilities, 6,648 private, and 734 faith-based facilities. 

The SHA has applied, and the National Treasury has approved special permitted procurement in contracting private and faith-based hospitals.

The current NHIF employees work as SHA workers until the draft human resource instruments are approved. 

They are currently under the SHA Board’s fiduciary responsibility and continue to execute their roles as guided by the mandate set out in the SHIF Act of 2023.

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