Ksh3B Disbursed, More to Come: SHA Moves to Ease Hospital Cash Crunch

July 23, 2025

The Social Health Authority (SHA) has committed to settling all pending payments to healthcare facilities within the next three weeks, amid growing concern over delayed disbursements that many say have strained operations and jeopardized service delivery.

On Tuesday, July 22, SHA Chief Executive Officer Dr. Mercy Mwangangi said the authority is finalizing the audit of claims submitted by more than 9,000 contracted facilities by the July 1 deadline. The goal, she explained, is to ensure all payments comply with Social Health Insurance Regulations 59 and 61 and meet the terms of each facility’s contract.

“SHA is currently reviewing all healthcare claims to ensure compliance with contractual obligations and access rules,” said Dr. Mwangangi.

So far, the authority has disbursed Ksh3 billion to eligible facilities, after completing the review of claims for accident and emergency services, haematology and oncology care, and renal treatments. Payments for the Primary Healthcare Fund and Maternity Package were also released on July 22.

The authority is now reviewing claims related to inpatient services, surgical procedures, and other medical packages, with final disbursements expected in the coming weeks.

The announcement comes at a time when many health facilities are sounding the alarm over the impact of delayed reimbursements.

According to a recent study by the Rural and Urban Private Hospitals Association of Kenya (RUPHA), only 20% of health providers under SHA’s Primary Health Care (PHC) model received their full monthly payments.

The ripple effects have been devastating. The study found that 36% of facilities had resorted to loans, 30% were on the verge of default, 13% faced auction risks, 9% were battling supplier lawsuits, and 1% had already shut down operations.

The Ministry of Health reports that 9,365 health facilities are currently contracted under the SHA scheme, including 5,219 public, 3,650 private, and 496 faith-based institutions.

Dr. Mwangangi acknowledged the urgency of the situation and reaffirmed SHA’s commitment to restoring confidence among healthcare providers through transparency, timely payments, and ongoing engagement.

Launched under the Taifa-Care initiative on October 1, 2024, SHA is at the core of Kenya’s push for universal health coverage, with over 24 million Kenyans now enrolled in the system.

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