SHA Finally Pays Up! Over 9,000 Hospitals to Receive Long-Awaited Payouts Under SHIF and PHCF Amid Reimbursement Crisis

The Social Health Authority (SHA) has broken its silence and taken decisive action amid mounting pressure from healthcare providers across the country.  

On Monday, July 14, SHA Chief Executive Officer Mercy Mwangangi confirmed that verified claims under the government’s new national health insurance frameworks, the Primary Health Care Fund (PHCF) and the Social Health Insurance Fund (SHIF), would be processed and disbursed in two key phases. 

The long-awaited payments, affecting over 9,365 empanelled facilities nationwide, will be released on July 14 and July 21, 2025, as per Mwangangi’s official statement. This announcement comes in response to widespread concerns from hospitals over serious financial constraints caused by reimbursement delays. 

“We wish to inform contracted Health Care Providers that reviewed and verified claims payments under Primary Health Care (PHC) and the Social Health Insurance Fund (SHIF) will be processed and disbursed on 14th and 21st July 2025,” Mwangangi affirmed. 

For months, numerous healthcare facilities, especially in rural and urban private sectors, have reported crippling operational strain, with some even shutting down due to cash flow disruptions. 

A recent report by the Rural and Urban Private Hospitals Association of Kenya (RUPHA) laid bare the gravity of the situation. Shockingly, only 20% of facilities enrolled under SHA’s PHC model had received full reimbursements.  

The consequences were dire: 36% resorted to taking on debt, 30% faced imminent default risks, 13% were on the brink of auction, 9% had pending small claims court cases from suppliers and 1% had already shut down. 

The report emphasized that lower-tier facilities were hardest hit, with Level 2 hospitals recording the highest number of non-payments and Level 3 hospitals struggling with inconsistent or unclear payment patterns. 

Despite these challenges, Health Cabinet Secretary Aden Duale recently confirmed to Parliament that 9,365 health facilities remain contracted under the SHA scheme.  

These include: 5,219 public hospitals, 3,650 private institutions and 496 faith-based health centers. 

Together, they provide essential health services to over 6.2 million Kenyans under both PHCF and SHIF programs. 

Through PHCF, citizens can access free outpatient care across registered facilities, while SHIF caters to specialized treatments, including dialysis, maternal care, cancer treatment, and advanced diagnostics. 

As the first wave of disbursements hits accounts, healthcare providers are cautiously optimistic. Yet, the bigger question looms: Will this mark the beginning of a more consistent and transparent era for public health financing in Kenya, or is it just a temporary fix?