Duale: Direct transfers under SHA to end drug shortages in hospitals

Health Cabinet Secretary  Aden Duale has revealed that a new direct payment system by the Social Health Authority (SHA) is helping end the long-standing problem of diverted health funds by county governments.

Speaking before the National Assembly Delegated Legislation Committee on Tuesday, Duale said the funds now go straight to hospitals based on the number of patients they serve.

This is a shift from the previous system under NHIF, where money was first sent to county treasuries.

"What used to happen before under NHIF is that money would be paid to County Revenue first, before they sent it to the health facilities. Under this system, money is sent directly to the facilities," he said.

Under the former arrangement, some counties reportedly used the funds to pay salaries instead of buying medicine or maintaining equipment, leading to a shortage of supplies in many public hospitals.

Duale noted that the direct transfer model has made it easier for hospitals to restock essential items and offer better services. "We are paying the health facilities every 14th of the month directly," he said.

The new system is part of a wider strategy to reform health financing and improve transparency. Duale said this reform would ensure health centres receive what they are due without delay or interference.

He also reported that nearly 22 million Kenyans have registered with SHA so far.

To boost enrolment, the Ministry of Health is preparing a national campaign to raise awareness and address misinformation.

"We will be moving around the country to rally Kenyans to enrol with the Social Health Authority since there is a lot of negative information out there, but eventually this will turn out to be one of the best decisions made by the Kenya Kwanza administration," he told lawmakers.

Duale said the Ministry is also working with the Social Protection Programme and the National Government Constituency Development Fund to support vulnerable people who cannot afford SHA contributions.

In addition, Kenya Medical Supplies Authority will now be paid directly by SHA, which will help settle overdue payments and ease supply challenges in public facilities.

Duale also discussed ongoing efforts to build a digital healthcare system under the Digital Health Act.

This includes plans to introduce a centralised patient database, where registered patients can access services from Level II to Level IV hospitals.

"Kenyans will not carry any file or a card to be treated. Once you are registered, you will walk into any health facility, whether it is a public hospital, private, or faith-based and get treated," he said.

He added that new digital health regulations will protect patient data and help stop unqualified people from offering medical services.