SHA Disburses KSh 3.4 Billion to Hospital Facilities

The Social Health Authority (SHA) has confirmed the disbursement of KSh 3.4 billion to contracted health facilities across Kenya under the new Social Health Insurance Fund (SHIF), easing growing concerns from hospitals over delayed payments. According to SHA Chief Executive Officer Dr. Mercy Mwangangi, the funds were released in phases after verification of claims submitted by health providers. The first batches of payments were rolled out on July 14 and July 21, and more allocations are currently being processed.

The disbursements cover a wide range of services, including inpatient care, maternity, mental wellness, critical care, drug and substance abuse cover, and surgeries. In addition to SHIF funds, the Primary Health Care Fund (PHCF) has released KSh 1.09 billion to support outpatient services in community and rural facilities, while another KSh 1.7 billion is being processed for specialized services such as dialysis, oncology, and surgery. These financial injections are expected to improve the flow of services in both public and private facilities contracted under the scheme.

SHA also moved to dispel misinformation circulating online about hospitals not receiving funds, particularly claims regarding Nyandiwa Level 4 Hospital. The authority clarified that the facility received KSh 19 million between January and June 2025, which catered for inpatient long-stay and maternity services. The hospital management has since confirmed receipt of the funds, underscoring SHA’s position that verified claims are being honored.

To enhance transparency and accountability, SHA announced plans to publish a comprehensive list of all disbursements on its official website, giving both facilities and the general public access to updated payment records. This move is expected to build confidence in the authority’s operations, especially as it continues to establish itself under the Social Health Insurance Act, 2023, which replaced the National Health Insurance Fund (NHIF).

The disbursement of funds marks a significant milestone in strengthening healthcare financing in Kenya, particularly at a time when the government is pushing for Universal Health Coverage (UHC). By ensuring timely payments and reducing cash flow strain in hospitals, SHA aims to stabilize service delivery and improve the quality of care across over 9,000 contracted facilities nationwide.