Governors direct SHA to settle Ksh10.3B health claims
By Kenneth Mwenda, September 29, 2025The Council of Governors has directed the Social Health Authority (SHA) to immediately settle Ksh10.3 billion in outstanding health claims owed to county governments. The leaders raised concern that the delayed reimbursements had put heavy strain on public hospitals and disrupted service delivery across the country.
The directive was part of the resolutions made on Monday, September 29, 2025, during the 28th Ordinary Session of the Intergovernmental Budget and Economic Council (IBEC), held at the Deputy President’s official residence in Karen, Nairobi.
In a joint communiqué released after the meeting, governors said the pending claims had left hospitals without essential supplies and created operational difficulties. They urged SHA, in collaboration with the Council of Governors, to establish a structured reimbursement framework to avoid a repeat of the crisis.
Also watch: Busia Senator Okiya Omtatah claims that SHA is extortion rather than healthcare reform.
“The Council expressed concern over delayed SHA claim reimbursements to County Governments, which had led to operational strain in public health facilities, accordingly, the Council directed SHA to settle the outstanding Ksh10.3 billion in verified claims and in collaboration with the Council of Governors, establish a structured reimbursement framework to ensure the sustainability of County health services,” the statement read in part.
Elsewhere, Bishop Cleophas Oseso has urged the government to address the SHA system challenges.
Service delivery under pressure
Many county health facilities had been forced to ration services as a result of delayed payments. The governors further warned that unless funds were released quickly, counties risked accumulating new debts, with suppliers unwilling to extend further credit to health facilities.
The issue of delayed reimbursements came on the same day that governors voiced frustration with the government’s electronic procurement system (e-GP). Abdullahi accused the Treasury of forcing the system on counties without proper planning or training. He said the rollout had slowed down budget implementation and left some counties unable to pay salaries or purchase fuel for municipal services.
“This quarter has been disastrous. We have not been able to spend money at all on account of the challenges that we’ve had,” he told the meeting. He added that garbage collection in several towns might also been disrupted because of fuel suppliers.
SHA’s progress
Despite the concerns, Health Cabinet Secretary Aden Duale presented a progress report showing SHA’s growing reach. He said over 26 million Kenyans had enrolled, with more than 17 million healthcare visits recorded. He added that SHA had already disbursed KSh59.3 billion to health facilities, including Ksh13.7 billion to county hospitals.