NAIROBI, Kenya – The Ministry of Health has sounded the alarm over billions of shillings in unpaid health insurance contributions by employers, warning that over 44,000 firms are in arrears with remittances to the Social Health Insurance Fund (SHIF).
The warning was issued by Health Principal Secretary Dr. Ouma Oluga during the unveiling of a new digital health system designed to improve transparency, track contributions, and curb fraud within Kenya’s revamped healthcare financing model.
“We are conducting audits of health facilities to verify services rendered. If a facility received Ksh 40 million, they must account for the patients they’ve treated,” said Dr. Oluga. “Some hospitals register patients under SHA, claim funds, but fail to provide medicines. That’s theft — and this system will help us stop it.”
The Social Health Authority (SHA), which oversees SHIF, is ramping up enforcement to ensure both employers and service providers uphold their responsibilities under the new health insurance framework.
SHA CEO Dr. Mercy Mwangangi stressed the need for collective action: “For all Kenyans to benefit from SHA, we must all contribute. Employers must remit, and providers must deliver.”
Migori County Under Scrutiny
Migori County was flagged during the launch, with the Ministry revealing that only half of its health facilities are currently compliant with SHA regulations.
Migori Governor Ochilo Ayacko, speaking at the event, emphasized that universal health coverage was a collective responsibility.
“Your health security is your first right — to yourself, the nation, and to God. A policy as critical as SHA and the digitalisation of health must receive full support,” said Governor Ayacko.
Digital Shift to Cut Costs and Increase Access
The new digital system will streamline SHA processes, reduce paperwork, and lower out-of-pocket costs for patients.
It is expected to improve efficiency in payments and service delivery by linking facilities directly with the central SHA database.
Authorities say this move is part of broader reforms aimed at building a transparent, accountable, and patient-centered health system.
