Duale: SHA will only reimburse dispensed medicines under new policy
By Kiprono Keileb, August 4, 2025Health Cabinet Secretary Aden Duale has announced a major policy shift in Kenya’s pharmaceutical sector, stating that the Social Health Authority (SHA) will now reimburse health facilities only for medicines that are dispensed to patients.
Speaking at a press conference on Monday, August 4, 2025, Duale announced the official launch of the National Product Catalogue, a digital registry of approved pharmaceutical products designed to enhance transparency, safety, and accountability in the health sector.
“The catalogue is fully integrated with the Pharmacy and Poisons Board and is now live across all SHA-contracted facilities, whether public, private, or faith-based. This initiative ensures that only authorised, safe, and approved pharmaceutical products are administered to Kenyans. It is a decisive step in eliminating counterfeit and substandard drugs from the market.” Duale said
The National Product Catalogue will serve as the central reference for drugs eligible for reimbursement under the SHA. Health facilities will only be compensated for medicines that are recorded as dispensed in this system. This means if a facility lacks stock and fails to fill a prescription, no reimbursement will be made.
“Facilities must ensure they have enough stock. Effective immediately, SHA will only pay for what is actually dispensed. No drugs on the shelves, no pay,” he stated
Additionally, all pharmaceutical companies operating in Kenya have been given a strict 30-day deadline to upload their certified product information into the system; failure to comply, Duale warned, will result in deregistration and automatic deletion from the SHA ecosystem.
“This is not optional. Any pharmaceutical company that fails to submit certified data within 30 days will be delisted. We are cleaning up the pharmaceutical space once and for all,” Duale added
The CS emphasised that the new system will not only ensure drug safety and improve patient outcomes but also streamline procurement and eliminate pilferage and inflated supply costs.
“We are shifting to a model that values efficiency, transparency, and service delivery. Kenyans deserve to walk into a facility, receive the right medication, and be assured it is safe and approved,” he said
The move is part of broader reforms under the recently launched Social Health Authority (SHA), aimed at overhauling Kenya’s healthcare financing framework and delivering Universal Health Coverage (UHC) in a more structured and accountable manner
Health sector stakeholders, including the Kenya Medical Association and health facility administrators, have welcomed the move but urged the ministry to ensure facilities, especially in remote areas, receive support to adjust to the new system and maintain reliable stock levels.
As Kenya advances its SHA reforms, the launch of the National Product Catalogue marks a pivotal step toward aligning health services with quality assurance, digital oversight, and fiscal responsibility.