Government intends to settle Sh5.3 billion in outstanding debts from the defunct National Hospital Insurance Fund, as stated by Duale.

In a bid to ease the financial burden on health institutions and improve healthcare services, President William Ruto has directed Health Cabinet Secretary Aden Duale to settle the arrears of the defunct National Health Insurance Fund (NHIF).

The outstanding invoices, totaling Sh5.3 billion, will be settled over a period of six months, as announced by the government. This settlement forms part of the ongoing reforms under the Social Health Authority (SHA), a new system designed to seal the corruption loopholes that crippled NHIF.

The Level 4 hospitals in Kakamega County are owed Sh55 million, with the Level 5 hospital in the county owing Sh166 million. In a positive development, SHA has pledged to release Sh100 million by August 15 to offset the pending claims owed to the Level 5 hospital.

As of the current status, 800,000 residents of Kakamega County have registered under SHA. However, approximately one million residents are yet to enrol. To address this, the government has announced a joint initiative with county governments to secure drugs and medical supplies from theft and to share a system to help secure medicines and non-pharmaceuticals within two weeks.

Kakamega Governor Fernandes Barasa has expressed support for the move to settle NHIF arrears, stating it will ease pressure on health services. The settlement is expected to stabilise healthcare financing and address hospitals' concerns over delayed reimbursements, as per commitments made by SHA.

Furthermore, the government has announced that the pending bills of Sh5.3 billion from the defunct NHIF will be settled in two months. No specific details regarding the release of Sh100 million by August 15 to offset pending claims for other hospitals were mentioned.

In addition, no information about any new system or measures to seal corruption loopholes, or a system to help secure medicines and non-pharmaceuticals within two weeks was provided in the announcements. However, it is anticipated that more details will be shared as the reforms progress.

The National Treasury will provide a supplementary budget for the settlement, ensuring that the much-needed funds are allocated to clear the outstanding debts. This move is expected to significantly improve the financial health of healthcare institutions in Kakamega County and beyond, ultimately benefiting millions of Kenyans who rely on these services.