Government ends SHA funds misuse with direct payments to hospitals, says CS Duale

Health CS Aden Duale (2nd left) when he appeared before the National Assembly Delegated Legislation Committee at Bunge Towers, Nairobi on April 22, 2025. (Photo: Ministry of Health)

By Maureen Kinyanjui
Wednesday, April 23, 2025

Duale said some counties had been using the funds for other purposes, like paying staff, which left many health facilities without basic medicines and other essential supplies.

The government has ended the misuse of health funds by county governments by introducing a direct payment system through the Social Health Authority (SHA), Health Cabinet Secretary Aden Duale has told Parliament.

Appearing before the National Assembly Delegated Legislation Committee, Duale said the funds are now sent straight to health facilities based on the number of patients they treat.

More To Read

This new approach replaces the old method used under the defunct National Health Insurance Fund (NHIF), where money was routed through county treasuries.

“What used to happen before under NHIF is that money would be paid to county revenue first, before they sent it to the health facilities. Under this system, money is sent directly to the facilities,” Duale said.

He said some counties had been using the funds for other purposes, like paying staff, which left many health facilities without basic medicines and other essential supplies.

“We are paying the health facilities every 14th of the month directly,” Duale told the committee chaired by Ainabkoi MP Samuel Chepkonga.

With direct payments, the Health boss explained, hospitals now receive their funds on time and can maintain steady stocks of drugs and medical equipment. This system, he said, is designed to support the proper running of hospitals and improve service delivery across the country.

SHA countrywide campaign

Duale also revealed that the number of Kenyans registered under SHA has reached nearly 22 million. He said the Ministry plans to launch a countrywide campaign to encourage more people to enrol and clear up doubts surrounding the new system.

“We will be moving around the country to rally Kenyans to enrol with the Social Health Authority since there is a lot of negative information out there, but eventually this will turn out to be one of the best decisions made by the Kenya Kwanza administration,” he said.

The SHA programme is part of a broader push to digitise the healthcare system through the Digital Health Act.

The Health CS said this shift will make it easier for patients to access services at any public, private or faith-based hospital without needing paper files or health cards.

“Kenyans will not carry any file or a card to be treated. Once you are registered, you will walk into any health facility, whether it is a public hospital, private, or faith-based and get treated,” he said.

The Ministry of Health is also working with other agencies to identify vulnerable people who need support to pay for the SHA.

Meanwhile, the Kenya Medical Supplies Authority will get its payments directly from SHA to help clear pending bills and support supply chains.