The Ministry of Health has disclosed that the defunct National Health Insurance Fund (NHIF) left behind a debt of KShs. 10 billion.
This burden continues to cripple operations in health facilities particularly faith-based, private, and county hospitals.
Of this amount, Kshs. 5.3 billion relates to unpaid claims of below Sh10 million per facility, with the highest individual claim at Kshs. 9.9 million and the lowest at Kshs. 300.
Appearing before the National Assembly’s Departmental Committee on Health this week, Health Cabinet Secretary Aden Duale said the Cabinet had resolved to prioritise settlement of the smaller debts first.
“The Cabinet has decided that we start by clearing claims below Kshs. 10 million, which represents the largest portion of the debt—subject to verification,” Hon. Duale said.
“Once the Supplementary Budget is passed and the Kshs. 5.3 billion is released, it will be easy to pay these claims. I am ready to share with the Committee a breakdown of the Kshs. 5.3 billion by county, and verification has already begun in collaboration with the Social Health Authority (SHA).”
According to CS Duale, by the time the national treasury is submitting the supplementary or the small figures for the majority of them are between Kshs. 1500 below up to Kshs. 300.
“So we were just looking for the people, whether these are real people. So every day they are coming to SHA, and we are verifying within one month, we are through the 5.3 billion because we have to verify at least every payment. This is public money, and these are claims that are under 10 million,”
Hon. Duale appealed to lawmakers to support efforts to settle the outstanding NHIF arrears, warning that many hospitals are facing severe financial distress as a result of the accumulated debt.
“I urge Members to support us, because the biggest challenge health facilities are facing today is not SHIF, but the old NHIF debt,” he said. “I can confirm to this Committee that several facilities—private, public, and faith-based—are on the verge of closure, not because of delayed SHIF reimbursements, but due to the huge pending bills inherited from NHIF.”
Citing St. Mary’s Mumias Mission Hospital in Kakamega, Hon. Duale noted that despite the Social Health Authority (SHA) settling its recent claims, the facility still has an outstanding NHIF debt of nearly Kshs. 40 million.
He said the Ministry is fast-tracking verification of the arrears to ensure payment is made once the Supplementary Budget is approved.
“St. Mary’s Mumias has received payment from SHA, yet it still carries an NHIF debt of close to Kshs. 40 million,” the CS said.
“We now have more than 15 doctors deployed to support verification, and the system has been fully taken over. Within a month, by the time the Supplementary Budget is presented to the House, we expect the verification to be complete and a final list of facilities to be paid ready. Only verified claims will be included in the Supplementary Budget.”
He affirmed that the verification exercise will be completed within a month, and that Parliament will receive a fully verified list of outstanding claims before the Supplementary Budget is tabled.
