Health Ministry appeals for Sh6 billion to support health insurance fund

The Ministry of Health has requested Parliament to allocate Sh6 billion to fund health insurance for low-income households.

During a Wednesday session with the National Assembly Departmental Committee on Health, Medical Services Principal Secretary Harry Kimtai highlighted the severe impact of proposed budget cuts in the supplementary budget, leaving 4 million Kenyans without coverage.

"The Primary Health Care Fund, fully supported by the government, limits access to services to dispensaries and health centres. More advanced medical treatments are available only upon referral from these facilities," said Dr Kimta

For the financial year 2023/2024, Sh6 billion was allocated to indigent healthcare. However, the allocation for the financial year 2024/2025 has been reduced to zero.

"This contradicts the government's agenda to make healthcare accessible to all, regardless of social or economic background," Dr Kimtai stated. "Therefore, the State Department requests the reinstatement of Sh6 billion for this critical national project."

Endebess MP Robert Pukose, chair of the National Assembly Committee on Health, explained that the budget cuts result from the withdrawal of the Finance Bill 2024, which was expected to raise Sh344 billion but was rejected.

"Due to this, we must rationalise the budget, resulting in a shortfall of approximately Sh121 billion. This means the government will have to borrow over Sh220 billion to cover the deficit," Dr Pukose said. "Consequently, we face challenges from the withdrawn finance bill, requiring us to rationalise the budget by removing critical budget lines," he added.

Pukose urged public and state officials, especially heads of parastatals, to be proactive in their services to the public and the government. "The budget cuts affect everyone, not just the president and members of parliament. It impacts your ability to deliver services to the people of Kenya".

PS Kimtai highlighted the need for state agencies to avoid wastage. "We expect that referral facilities will benefit from the proper organisation and operation of the Social Health Insurance Fund, as they are the biggest losers if the insurance claims are not reorganised," he said.

Dr Kimtai stated that the ministry is currently focusing on accurate cost estimation, including labour costs in healthcare claims, which was previously overlooked. He emphasised that these initiatives and legal reforms aim to reduce referral hospitals' reliance on government funding.

According to the committee, the failure to fund insurance for the indigent population undermines the essence of universal healthcare coverage, which prioritises equity.

The Ministry of Health has come under scrutiny following the suspension of the NHIF and the transition to the Social Health Insurance Fund, which was recently halted by a court order.

Many Kenyans have expressed concerns about the SHIF, questioning how the government will determine who qualifies as indigent. The SHIF was suspended by a court order for 120 days, delaying its implementation originally scheduled to begin in October.