President William Ruto has announced a plan to clear the outstanding debt left by the defunct National Health Insurance Fund (NHIF).
In a statement on Wednesday, March 5, Ruto acknowledged the financial strain caused by NHIF’s debts on health facilities.
"National Health Insurance Fund (NHIF) debts have been a heavy burden on healthcare facilities and providers for the past 10 years. This has had a devastating effect in the provision of health services in public, faith-based and private hospitals.
"By the time the NHIF was wound up in November 22 2024, it had a whopping debt of Ksh33 billion, affecting the ability of health facilities to provide services under the Social Health Authority (SHA)," the statement read.
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To address the debt crisis, Ruto said the government will immediately make full payments to hospitals with claims of Ksh10 million and below.
He added that hospitals with claims exceeding Ksh10 million will undergo a verification process to be completed within 90 days before a structured payment plan is implemented.
"The government has resolved to pay all hospitals with total claims of Ksh10 million and below in full, representing 91 per cent of all facilities that were contracted by NHIF.
"The remaining 9 per cent of hospitals, with total claims of above Ksh10 million, will be subjected to a verification exercise that should be completed within 90 days after which a payment plan will be agreed on," the statement added.
Ruto said a verification committee will be established and officially gazetted within a week.
On the other hand, he assured Kenyans that the SHA has been actively processing payments for ongoing health claims.
Ruto mentioned that SHA has paid out Ksh18.2 billion in undisputed claims since its inception on October 1, 2024.
"Under the Social Health Authority, current claims will continue to be paid within a month. To date, SHA has paid all undisputed claims lodged by since its inception on October 1, 2024, and up to January 31, 2025, totalling Ksh18.2 billion.
"The government is fully committed to providing Universal Health Coverage to every Kenyan without discrimination. I would like to assure all Kenyans that any challenges being experienced in the implementation of Taifa Care are being attended to and resolved," the statement concluded.
