File image of Social Health Authority (SHA) building in Nairobi.

The government has announced a comprehensive plan to clear outstanding debts owed by the now-defunct National Health Insurance Fund (NHIF), which stood at KSh33 billion when it was wound up on November 22, 2024.

According to a statement issued from State House on Tuesday, the debt had placed a significant strain on healthcare facilities over the past decade, affecting the delivery of services in public, faith-based, and private hospitals.

To address the issue, the government has resolved to fully pay all hospitals with claims of KSh10 million and below, a move that will benefit 91 percent of the facilities that were previously contracted by NHIF.

“The remaining nine percent of hospitals, whose claims exceed KSh10 million, will undergo a verification process within 90 days, after which a payment plan will be agreed upon,” the statement read.

Additionally, the Cabinet Secretary is expected to gazette the verification committee within a week to oversee the process. Under the new Social Health Authority (SHA), which replaced NHIF, the government has assured that all current claims will continue to be settled within a month.

“So far, SHA has paid all undisputed claims submitted between October 1, 2024, and January 31, 2025, amounting to KSh18.2 billion,” the statement added.

The government reiterated its commitment to ensuring the success of Universal Health Coverage (UHC) through Taifa Care, assuring Kenyans that any challenges in its implementation are being addressed.

“I want to assure all Kenyans that any challenges being experienced in the implementation of Taifa Care are being attended to and resolved,” the statement concluded.