The Social Health Authority has announced a phased payment plan for verified claims under the newly introduced Primary Health Care Fund (PHCF) and the Social Health Insurance Fund (SHIF), offering a lifeline to thousands of contracted health facilities across the country struggling with delayed reimbursements.

In a statement released on Monday, July 14, SHA Chief Executive Officer Mercy Mwangangi said the government would begin settling the reviewed and approved claims in two separate disbursements, one on July 14 and the next on July 21.

“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,” read the statement by Mwangangi.

The announcement comes in the wake of growing concerns from a number of healthcare providers who have complained of operational difficulties due to delayed payments. In recent weeks, several facilities raised alarm over rising costs and disruptions caused by cash flow shortages.

A report by the Rural and Urban Private Hospitals Association of Kenya (RUPHA) painted a grim picture, indicating that only 20 per cent of contracted facilities under the PHC model had received full monthly reimbursements.

The report further highlighted that 36 per cent of the facilities had resorted to borrowing to remain operational, while 30 per cent were at risk of defaulting on those loans. Additionally, 13 per cent faced auction threats, 9 per cent were being pursued in small claims courts by suppliers, and 1 per cent had already shut down.

The data also showed that low-tier facilities bore the brunt of the delayed payouts, with level 2 hospitals recording the highest rate of non-payments. Level 3 facilities, on the other hand, reported major inconsistencies and uncertainty in payment processing.

As of last week, Health Cabinet Secretary Aden Duale told Parliament that 9,365 health facilities had been contracted under the SHA model. These include 5,219 public hospitals, 3,650 private facilities, and 496 faith-based institutions.

Duale added that these facilities collectively serve more than 6.2 million Kenyans under the PHCF and SHIF schemes. The PHCF enables access to outpatient services at no cost, while SHIF covers more advanced treatments such as dialysis, imaging, maternal care, and cancer services.