SHIF Funds to Skip Counties, Go Direct to Hospitals

The Ministry of Health has rolled out a series of reforms aimed at strengthening healthcare delivery and ensuring Kenyans receive timely access to medical services under the newly established Social Health Insurance Fund (SHIF). As part of the overhaul, funds will now be channelled directly to healthcare facilities, eliminating delays previously caused by routing through County Revenue Funds.

This reform marks a shift from the system under the now-defunct National Hospital Insurance Fund (NHIF), where funds were channelled to county governments before reaching health facilities. According to Health Cabinet Secretary Aden Duale, the new approach will streamline processes and resolve the persistent issue of delayed payments to medical institutions, which has hindered the timely provision of essential services, such as drug and medical supply availability.

Under the new system, health facilities, public, private, or faith-based, will receive SHIF payments directly on the 14th of each month. This change aims to ensure prompt service payment, eliminating delays caused by county government allocations. Duale noted that these delays have strained the healthcare system by limiting the availability of essential drugs and supplies.

The direct payment model is expected to improve the efficiency of healthcare delivery, enabling facilities to plan and maintain operations effectively. It will also reduce bureaucratic obstacles, ensuring funds reach frontline healthcare services promptly.

The Social Health Authority (SHA), which administers SHIF, plans to enroll 22 million Kenyans. Once registered, these individuals can access services at various facilities, including public hospitals, private clinics, and faith-based institutions, using a digital platform. This system allows patients to receive treatment without physical health cards or files, reducing administrative burdens for both patients and providers.

Duale urged Kenyans to enrol in the SHA, addressing concerns and misinformation about the system. He emphasized that these reforms will transform Kenya’s healthcare system and reflect the Kenya Kwanza government’s commitment to universal healthcare access under President William Ruto.

To support vulnerable populations, the Ministry of Health is compiling data on at-risk groups for sharing with the Social Protection Programme and the National Government Constituency Development Fund (NG-CDF). This initiative aims to assist those unable to afford SHA contributions, ensuring equitable access to quality healthcare.

The Kenya Medical Supplies Authority (KEMSA) will also receive direct SHA payments to clear backlogs owed to health facilities by national and county governments. This step is expected to minimize supply chain disruptions, improve medicine and supply availability, and ensure smooth operations at health facilities nationwide.

Central to these reforms is the Digital Health Act, which will establish an integrated digital healthcare system. The proposed regulations create a framework for data exchange and health information management. A key feature is the Enterprise Service Bus, a technology that securely routes messages between certified digital health platforms, ensuring efficient and secure data transfer for providers and patients.

The Digital Health Act also establishes the Kenya Health Data Governance Framework to regulate the collection, access, and sharing of health data. The SHA will act as the custodian of a national health data bank, safeguarding sensitive information while making it accessible to authorized practitioners.

While these reforms are ambitious, they raise critical questions about the future of Kenya’s healthcare system:

  • Can the direct payment system prevent potential corruption at the local level? Decentralizing funds to facilities may risk mismanagement without robust oversight.
  • How will the enrollment process support vulnerable groups, especially in remote areas? Effective outreach is essential for inclusivity.
  • Can the digital health system be implemented effectively nationwide? The digital divide in rural areas, where internet access and literacy are limited, may hinder adoption.
  • Will public trust in the SHA ensure its success? Overcoming scepticism is crucial for widespread acceptance.

Although the shift to direct payments and digital health integration represents significant progress, success depends on transparent implementation, equitable access, and addressing existing challenges. The government’s ability to navigate these complexities will determine whether these reforms deliver their promised benefits to all Kenyans.