President William Ruto on Wednesday, March 5, 2025, made an elaborate plan to save the country’s healthcare system from collapsing amid threats from various medical officers and private hospitals demanding only cash payments.
In a statement, the head of state announced that his administration was going to clear debts owed to hospitals that were contracted by the now-defunct National Health Insurance Fund (NHIF).
Ruto made it public that all hospitals owed Ksh10 million and below would be fully paid to avert crises in the country’s healthcare system.
“To comprehensively deal with this challenge, the government has resolved to pay all hospitals with total claims of Ksh10 million and below in full, representing 91 per cent of all facilities that were contracted by NHIF,” Ruto announced without providing a timeline when the money would be paid.
Above Ksh10 million
However, Ruto indicated that hospitals claiming over Ksh10 million would be subjected to a verification exercise set to be completed within 90 days.
The government will then decide on the payment plan.
“The remaining 9 per cent of hospitals, with total claims of above Ksh10 million, will be subjected to a verification exercise that should be completed within 90 days after which a payment plan will be agreed on,” Ruto further explained.
“The Cabinet Secretary will gazette the verification. committee within a week,” Ruto added.
SHA has paid claims
At the same time, Ruto confirmed that Social Health Authority (SHA) would continue to remit payments to contracted hospitals every month.
“Under the Social Health Authority, current claims will continue to be paid within a month. To date, SHA has paid all undisputed claims lodged since its inception on October 1, 2024, and up to January 31, 2025, totaling Ksh18.2 billion,” Ruto affirmed.
He committed to make universal health care while pointing an accusing finger at NHIF, which he lamented had left behind a Ksh33 billion debt.
“National Health Insurance Fund (NHIF) debts have been a heavy burden on healthcare facilities and providers for the past 10 years. This has had a devastating effect in the provision of health services in public, faith-based, and private hospitals.
“By the time the NHIF was wound up in November 22 2024, it had a whopping debt of KSh33 billion, affecting the ability of health facilities to provide services under the Social Health Authority (SHA).”
