Health Cabinet Secretary Aden Duale has directed the Social Health Authority (SHA) to release Sh4 billion allocated to settle verified legacy debts owed to small healthcare facilities by the defunct National Hospital Insurance Fund (NHIF).
The directive came after SHA Chief Executive Officer Dr Mercy Mwangangi stated during a digital migration briefing that the authority planned to begin disbursing the funds in July.
Rejecting the timeline, Duale questioned why the payments had not been made, noting that the money had already been allocated and that verification of the claims had been completed before the funds left the National Treasury.
SHA CEO Dr Mercy Mwangangi, with Health CS Aden Duale at Sarova Stanley Hotel in Nairobi, June 29, 2026. [Edward Kiplimo, Standard]
"I don't know why you are talking about July. You got this money a long time ago, so you need to come back and explain to us how much you've paid and why you are keeping the money," the CS told Dr Mwangangi.
To enforce strict accountability, the Cabinet Secretary further directed the SHA CEO to submit an official report by Friday this week, stating that the report must clearly outline how much has already been disbursed to the facilities and the exact balance left.
The Sh4 billion will be used to settle verified NHIF legacy claims from zero up to Sh10 million, which mainly affects Level 2, 3 and 4 health facilities.
The CS gave Dr Mwangangi two weeks to ensure the verified claims are paid, warning that delayed settlements may continue to heavily strain healthcare facilities and could force some into mounting debts.
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"We must pay this first batch so that our healthcare facilities do not close because of debt," the CS added.
Looking ahead, the CS directed SHA to begin verifying the next batch of larger NHIF legacy claims, estimated between Sh10 and Sh15 billion, during the months of July and August.
He promised that the government would seek additional funding through a supplementary budget in September to enable the full payment of those verified claims by November.
The government has prioritised settling smaller verified claims as part of efforts to clear outstanding NHIF debts that accumulated before the transition to SHA, aiming to restore the financial stability of local health facilities across the country.
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