Health Cabinet Secretary Aden Duale has assured Parliament that the government will settle all verified claims under the defunct National Hospital Insurance Fund (NHIF), following the allocation of Ksh4 billion by the National Treasury.

Speaking before the Senate Plenary on Wednesday, April 22, 2026, chaired by Senate Speaker Amason Kingi, Duale said the funds will cover claims ranging from Ksh1 to Ksh10 million owed to health facilities.

“I assured the House that all verified claims ranging from Ksh0 to Ksh10 million under the defunct National Hospital Insurance Fund will be settled following the allocation of Ksh4 billion by the National Treasury,” Duale said in a post on his X account.

He said the move is meant to ease pressure on hospitals and restore confidence in the health system after the transition from NHIF to the Social Health Authority (SHA).

The Ksh4 billion allocation was approved earlier this month under the Supplementary Appropriations Act, 2026, signed by President William Ruto on April 8, 2026. The money is part of efforts to clear long-standing arrears inherited from NHIF, which was dissolved in November 2024.

The government inherited about Ksh33 billion in unpaid medical claims after the transition. By early 2025, it had already settled Ksh18.2 billion in undisputed claims. Later, it prioritised Ksh10 billion to pay most facilities owed below Ksh10 million within a 90-day framework.

Health system reforms

Duale said the new payout will continue that process and ensure facilities do not suffer cash flow problems.

He told the Senate that the settlement will help maintain continuity of care, especially in public and faith-based hospitals that depend heavily on government reimbursements.

“This is aimed at restoring confidence and ensuring continuity of care for affected beneficiaries,” he said.

The CS also pointed to wider reforms in the health sector under SHA, which has replaced NHIF. He said the new system has introduced a structured claims process that is improving efficiency and accountability.

According to Duale, SHA has achieved a 74 per cent settlement rate across all levels of care, supported by a 90-day claims processing policy. He said this has reduced delays that previously affected hospitals under NHIF.

He also highlighted reforms at the Kenya Medical Supplies Authority (KEMSA), which he said now records a 92 per cent order fill rate, improving supply of essential medicines.

Under the Digital Superhighway initiative, he said the health sector has improved transparency and reduced corruption levels from 36 per cent to 6 per cent. He also cited enforcement actions, including closure of more than 1,200 non-compliant facilities, sanctions against 40 clinicians, and denial of system access to 22 doctors.

The Senate briefing also touched on ongoing reforms in cancer care, digital health systems, and public health programmes. Duale said the government is expanding oncology services and strengthening transparency through digital systems meant to reduce fraud.

Ruto has previously defended the SHA rollout, saying the government is still removing individuals who manipulate the system while improving efficiency in payments to hospitals.

Duale said the combined reforms and financial support are aimed at stabilising the health sector after years of delayed payments and system inefficiencies.