President William Ruto has announced a government initiative to settle the Sh33 billion debt left behind by the now-defunct National Health Insurance Fund (NHIF), a financial strain that has affected healthcare facilities for a decade.

In a statement on Wednesday, Ruto acknowledged that NHIF’s debts had disrupted health services in public, private, and faith-based hospitals. He outlined a structured repayment plan aimed at resolving the issue in phases:

Immediate settlement for smaller claims – Ruto said hospitals with total claims of Sh10 million and below, which make up 91 per cent of former NHIF-contracted facilities, will receive full payments immediately.

Verification process for larger claims – The remaining 9 per cent of hospitals, whose claims exceed Sh10 million, will undergo a verification process over the next 90 days before a payment plan is finalised.

Formation of a verification committee – the President also stated that his Cabinet Secretary will gazette the verification committee within a week to oversee the process.

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Ongoing claim payments under SHA – According to Ruto, the Social Health Authority (SHA) will continue settling current claims within a month, having already paid Sh18.2 billion for undisputed claims from October 1, 2024, to January 31, 2025.

Reaffirming the government’s commitment to Universal Health Coverage, Ruto assured Kenyans that any difficulties in the rollout of Taifa Care were being addressed.

“I would like to assure all Kenyans that any challenges being experienced in the implementation of Taifa Care are being attended to and resolved,” he said.

The NHIF’s financial struggles have long been a point of concern for healthcare providers, with many struggling to offer services due to unpaid claims.

The government’s latest plan aims to ease these challenges, but its success will depend on the effective implementation of the verification process and timely disbursement of funds.