By Erestinah Jane, July 6, 2026
The Social Health Authority (SHA) has begun the disbursement of KSh 4 billion to clear verified legacy medical claims inherited from the defunct National Hospital Insurance Fund (NHIF), offering relief to thousands of healthcare providers that have awaited payment for years.
The payment follows a directive by Health Cabinet Secretary Aden Duale and targets 3,527 small and medium-sized health facilities with verified outstanding claims of KSh 10 million and below.
To facilitate the payments, SHA has launched a nationwide regional verification and sign-off exercise requiring eligible facilities to confirm their claims before funds are released.
Under the payment plan, only verified claims worth KSh 10 million and below qualify for the initial disbursement. Facility owners and administrators must physically sign settlement agreements confirming the verified amounts before the funds are electronically transferred to their accounts.
SHA has published the list of all 3,527 eligible healthcare facilities, which is available at county SHA offices and through the authority’s official website.
The regional verification exercise commenced on July 6 in Kisumu, covering facilities from the Western and Nyanza regions. Similar exercises are scheduled throughout July in other parts of the country.
Facilities in the Rift Valley and Central regions are currently undergoing verification at SHA offices in Eldoret, Nakuru, and Nyeri.
Health facilities in Embu, Meru, Tharaka Nithi, and Kitui counties are expected to complete the process on July 15 at the SHA office in Embu.
The Nairobi exercise, covering Nairobi, Kiambu, Machakos, Makueni, and Kajiado counties, will take place on July 16 and 17 at the SHA Headquarters.
Facilities in the Coast region, including Mombasa, Kwale, Kilifi, Taita Taveta, Tana River, and Lamu, will undertake verification on July 20 and 21 in Mombasa, while those in Garissa, Wajir, and Mandera counties are scheduled for July 23 and 24 at the Garissa SHA office.
SHA Chief Executive Officer Dr. Mercy Mwangangi said the current KSh 4 billion allocation is intended to settle smaller verified claims first while preparations continue to address larger outstanding debts.
She noted that healthcare facilities with verified claims exceeding KSh 10 million are not included in the current payment phase. Instead, SHA is engaging the National Treasury to secure additional funding through the 2026/2027 supplementary budget to clear the larger claims.
According to SHA, approximately 451 major healthcare institutions fall under this category, with their claims already verified and awaiting budgetary allocation.
The authority also confirmed that verification of the remaining legacy NHIF debt portfolio, estimated at about KSh 33 billion, will continue throughout July and August as part of efforts to fully resolve outstanding obligations inherited from the former insurance scheme.
Health officials say clearing the historical debts is expected to improve cash flow in healthcare facilities, strengthen service delivery, and restore confidence among providers participating in Kenya’s public health financing system.
