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News06 July 2026 - 08:46

State releases Sh4bn to settle defunct NHIF hospital debts

SHA said the funds will be used to settle verified claims amounting to Sh10 million and below.

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by CHRISTABEL ADHIAMBO
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SHA headquarters in Nairobi/ FILE

The government has released Sh4 billion to begin settling verified outstanding claims owed to healthcare facilities by the defunct National Hospital Insurance Fund (NHIF), with the Social Health Authority (SHA) announcing a nationwide sign-off exercise to pave the way for payments.

In a notice, SHA said the funds will be used to settle verified claims amounting to Sh10 million and below owed to eligible healthcare facilities.

The authority said the payment programme will benefit 3,527 healthcare facilities across the country.

"The Government of Kenya has released Sh4 billion to settle verified outstanding hospital claims owed to healthcare facilities by the defunct National Health Insurance Fund (NHIF), for claims amounting to Sh10 million and below," SHA said.

The authority said healthcare facilities eligible for payment will be required to sign agreements confirming that their verified claims have been fully settled before the funds are released.

According to SHA, the sign-off process is intended to facilitate seamless processing and payment of the verified claims.

"Eligible healthcare facilities will be required to execute sign-off agreements confirming that their verified defunct NHIF claims have been fully settled," the authority said.

SHA said it has deployed teams of officers to county offices across the country to coordinate the exercise and assist healthcare providers in completing the required documentation.

"To ensure the seamless processing and payment of all eligible healthcare providers, the Social Health Authority (SHA) has deployed a team of officers to County offices to facilitate the sign-off exercise. Completion of the sign-off process will pave the way for the release of payments," the authority said.

The authority said the sign-off exercise will begin on July 6 in the Western region covering Migori, Kisii, Nyamira, Kisumu, Homa Bay, Siaya, Busia, Vihiga, Kakamega and Bungoma counties at the SHA office in Kisumu.

The exercise will then move to the North Rift region on July 8 and 9, covering Trans Nzoia, Turkana, West Pokot, Uasin Gishu, Elgeyo Marakwet, Nandi and Baringo counties at the SHA office in Eldoret.

Healthcare facilities in Nakuru, Kericho, Bomet and Narok counties will undertake the exercise at the SHA office in Nakuru on July 10, while those in Nyandarua, Laikipia, Samburu, Isiolo, Nyeri, Kirinyaga, Murang'a and Marsabit counties will report to the SHA office in Nyeri on July 13 and 14.

The authority said healthcare providers from Meru, Embu, Tharaka Nithi and Kitui counties will complete the process at the SHA office in Embu on July 15, while facilities in Nairobi, Kajiado, Machakos, Makueni and Kiambu counties will report to the SHA headquarters on July 16 and 17.

The exercise will conclude with healthcare facilities from Coast counties reporting to the SHA office in Mombasa on July 20 and 21, while those from Garissa, Mandera and Wajir counties will attend the SHA office in Garissa on July 23 and 24.

SHA urged all eligible healthcare providers to attend the exercise at their designated regional stations and complete the required documentation to facilitate payment.

The authority said the list of the 3,527 eligible healthcare facilities is available on its website and at all SHA county offices.

SHA said it is also seeking budgetary support from the National Treasury in the 2026/27 financial year to facilitate settlement of verified outstanding claims exceeding Sh10 million per healthcare facility that were inherited from the defunct NHIF.

The authority said the funding request covers claims owed to 451 healthcare facilities, adding that the claims have already undergone the required verification process. SHA said it will provide further updates to stakeholders as the process progresses.

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