Treasury allocates Sh4 billion to settle pending NHIF bills for small health facilities

Treasury allocates Sh4 billion to settle pending NHIF bills for small health facilities
Treasury allocates Sh4 billion to settle pending NHIF bills for small health facilities - The defunct NHIF headquarters in Upper Hill, Nairobi. (Photo: Handout)
The defunct NHIF headquarters in Upper Hill, Nairobi. (Photo: Handout)

He also ordered that facilities with higher claims undergo verification before a structured payment plan is implemented.

Treasury has allocated Sh4 billion to settle pending NHIF bills owed to health facilities with verified claims of up to Sh 10 million, while larger facilities with higher outstanding claims continue to await payment as verification and settlement plans proceed.
The allocation follows a directive issued by President William Ruto on March 5, 2025, instructing the Social Health Authority (SHA) to fully settle outstanding claims for hospitals owed Sh10 million and below.
He also ordered that facilities with higher claims undergo verification before a structured payment plan is implemented.

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Treasury Cabinet Secretary John Mbadi said the Sh4 billion allocation will be used within the current financial year to begin clearing debts inherited from the now-defunct National Health Insurance Fund (NHIF), which left behind an estimated Sh30-Sh33 billion in unpaid bills owed to public, private, and faith-based health facilities across the country.
Under the payment plan, hospitals and facilities owed less than Sh10 million will be prioritised for full settlement once claims are verified.
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The government says this category represents the majority of contracted facilities, and the move is intended to ease financial pressure and support continuity of healthcare services.

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Facilities owed more than Sh10 million will continue undergoing a verification process before structured payment arrangements are agreed upon, meaning some providers may wait longer before receiving full settlement.
Mbadi said the payments form part of broader health sector reforms aimed at improving access to care under the new health financing model. According to the Treasury, 31.2 million Kenyans have so far registered under the Social Health Authority (SHA).
The government also reported progress in strengthening primary healthcare services, including the establishment of 228 primary care networks, recruitment and training of more than 107,000 community health promoters, and deployment of over 16,000 medical interns.
The government says additional plans are in place to progressively clear the remaining NHIF pending bills as part of efforts to stabilise the health system and rebuild confidence among healthcare providers.

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