SHA Pays Sh125.1 Billion in Claims as Treasury Flags Healthcare Funding Challenges

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The Social Health Authority (SHA) has paid Sh125.1 billion in claims to 9,699 healthcare providers and registered 31.6 million Kenyans, even as the government faces mounting concerns over delayed payments, facility closures and the sustainability of its universal healthcare programme.

The figures, recorded as of September in the Draft 2027 Budget Policy Statement, highlight the reach of Taifa Care, the government’s flagship healthcare initiative, while exposing financial pressures that could affect service delivery.

According to the Treasury document, participants at public hearings held at the Kenyatta International Convention Centre between October 9 and 13 raised concerns that unpaid SHA claims had contributed to the closure of some healthcare facilities, including private providers.

The concerns have cast a spotlight on the authority’s ability to settle claims promptly as demand for healthcare services grows. The government is targeting an additional 4.5 million beneficiaries in the 2027-28 financial year, a move that could further increase pressure on the financing system.

The Budget Policy Statement also highlights concerns over possible out-of-pocket expenses for patients seeking mental health services, despite the government’s commitment to universal health coverage.

Questions were also raised about whether the Emergency Care Fund would have sufficient resources to support the introduction and anticipated expansion of emergency care services.

Beyond healthcare financing, the Treasury document points to funding gaps affecting HIV, tuberculosis and malaria programmes amid declining external support. It also notes continued infections among young people, highlighting persistent public health challenges.

Despite these concerns, the government has proposed a substantial increase in health sector funding for the next financial year.

The sector has been allocated Sh229.2 billion for 2027-28, up from Sh176.3 billion in the printed estimates for the current financial year. Of the proposed allocation, Sh172.6 billion will go to Medical Services, while Sh56.5 billion is earmarked for the Public Health and Professional Standards department.

Under its expansion plans, SHA aims to register an additional 4.5 million beneficiaries, while the number of Primary Care Networks is expected to increase from 278 to 315.

The government has also set targets to reduce malaria incidence to 42 cases per 1,000 people, lower facility-based maternal mortality to 80 deaths per 100,000 deliveries and increase the number of kidney transplants to 59.

The latest assessment presents a mixed picture for Taifa Care, with rising registration numbers and increased budgetary allocations accompanied by concerns over claims settlement, access to services and the adequacy of funding as the programme expands.

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