The funds, released on Monday, include Sh1.4 billion in claims tied to the now-defunct National Health Insurance Fund (NHIF).
A substantial portion of the allocation targets critical health initiatives: Sh1 billion will fund the Linda Mama programme, which supports maternal healthcare, while Sh1.3 billion is directed to primary healthcare providers.
The release follows President William Ruto’s recent pledge to clear all debts owed to hospitals and service providers under NHIF, a commitment he reaffirmed during a church service at Soweto Catholic Church in Embakasi East, Nairobi.
“We are going to make sure that all our public facilities are funded so that they can roll out Universal Health Coverage,” Ruto stated, emphasizing that this step complements the Sh5 billion previously disbursed to smooth the transition to the Universal Health Coverage (UHC) framework.
The delay in payments had sparked widespread criticism, with several public, private, and mission hospitals scaling back operations due to financial constraints.
Public hospitals in Nairobi alone are owed Sh2.1 billion, with Kenyatta National Hospital bearing the brunt at Sh1.6 billion.
This funding release is part of the ongoing shift to the Social Health Insurance Fund (SHIF), a new health system designed to enhance affordability and accessibility.
The government has assured stakeholders that remaining payments will be made progressively as funds become available, aiming to rebuild trust in the system.
The transition to SHIF includes plans to ensure an uninterrupted supply of essential drugs by involving local communities in managing health facilities.
The program also introduces a tiered insurance model, where those unable to afford premiums will receive government support, while others contribute based on their financial capacity.
President Ruto stressed the importance of inclusivity in achieving UHC, reiterating that the new system is tailored to uplift vulnerable populations and bolster healthcare accessibility across Kenya.