The government has outlined a phased plan to clear the KES33 billion debt left by the defunct NHIF, starting with immediate full payments to hospitals with claims of less than KES10 million. 

President William Ruto announced that claims exceeding this amount will undergo a 90-day verification process before a structured payment plan is implemented. 

He has directed Health Cabinet Secretary Deborah Barasa to gazette the verification committee within a week to fast-track the process.

"The government has resolved to pay all hospitals with total claims of Kes 10 million and below in full, representing 91 percent of all facilities that were contracted by NHIF. The remaining 9 percent of hospitals, with total claims of above KES10 million, will be subjected to a verification exercise that should be completed within 90 days after which a payment plan will be agreed on," noted the President.

With mounting crisis over failure of the newly launched Social Health Authority to honour bills of patients in hospitals, Dr. Ruto appeared to differ, stating that the new system is honoring debts promptly. 

"Under the Social Health Authority, current claims will continue to be paid within a month. To date, SHA has paid all undisputed claims lodged by since its inception on October 1, 2024, and up to January 31, 2025, totalling KES18.2 billion," he said.

"The government is fully committed to providing Universal Health Coverage to every Kenyan without discrimination. I would like to assure all Kenyans that any challenges being experienced in the implementation of Taifa Care are being attended to and resolved," his statement concluded.

This announcement comes after the President defended the Social Health Insurance fund, noting that almost half of the NHIF money was paid to fictional claims, just hours after the Auditor General’s report revealed that the State had used over KES104 billion on the SHA system, an issue he dismissed

According to the president, the majority of the SHA critics were not even registered for the service. “The noise being made online is made by brokers who benefitted from NHIF initially. I have heard they said we used KES100 billion for the SHA system. No coin will be used. We want to sort out fraud. Funds were stolen by fraudsters. 40 percent of NHIF money was paid to fake, fraudulent claims. That will not happen when I am president,” Ruto has said while addressing mourners at MP Malulu Injendi’s burial in Malava, Kakamega County.

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