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Govt Moves to Clear NHIF Legacy Bills to Protect Health Services

NAIROBI, Kenya Jan 27 – The Ministry of Health has intensified efforts to resolve longstanding unpaid medical bills inherited from the now‑defunct National Hospital Insurance Fund (NHIF) as part of the transition to the Social Health Authority (SHA), officials said on Monday.

Principal Secretary for Medical Services Ouma Oluga chaired a consultative meeting with SHA leadership and the Pending Bills Verification Committee to review verified financial obligations carried over from the former NHIF system and to devise structured, transparent and accountable mechanisms for their settlement.

The engagement aimed at safeguarding continuity of healthcare services and strengthening public financial management reflects growing concern that unresolved debts from NHIF could undermine service delivery under SHA if not addressed promptly.

“Our focus is on systematic verification and timely settlement of pending bills so that health service delivery continues without disruption during the transition to the new regulatory framework,” PS Oluga said, according to a statement issued after the meeting.

The transition from NHIF to SHA, mandated by the Social Health Insurance Act, required the transfer of verified liabilities as part of efforts to overhaul Kenya’s health financing system. A parliamentary audit earlier highlighted that the government has been paying verified claims while significant amounts are still under examination to ensure authenticity before payment.

In previous discussions, lawmakers noted that NHIF left behind both historical and recent liabilities  including bills deemed fraudulent through verification  and that only verified claims between zero and Sh10 million would be funded quickly, with larger claims subjected to thorough quality checks and verification.

Last year, the Health Cabinet Secretary acknowledged that many facilities, particularly rural and faith‑based hospitals, were struggling with debts accrued under NHIF, in some cases amounting to tens of millions of shillings, prompting swift verification and payment plans once Supplementary Budget allocations are approved.

Though the verification process has faced legal and administrative challenges  including a High Court ruling that struck down an earlier pending claims verification committee on data privacy grounds  government officials have repeatedly emphasised the importance of ensuring that only legitimate claims are honoured to protect public finances while maintaining service continuity.

The consultative meeting also emphasised the need for ongoing cooperation between SHA, the Ministry of Health and other government agencies to ensure transparency and accountability in managing financial obligations, with officials noting that timely settlement of verified bills would help restore confidence among healthcare providers and stakeholders.

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