Government Implements New Health Financing Strategy

The Kenyan government has unveiled a sweeping health financing reform under its Taifa Care program, aiming to deepen Universal Health Coverage (UHC) and make care more equitable. Central to this strategy is the replacement of the old National Hospital Insurance Fund (NHIF) with a newly established Social Health Authority (SHA), backed by a more inclusive financing model.
Under the SHA framework, three distinct funds have been set up:
A Primary Health Care Fund (PHC), fully funded by taxes, which will pay for preventive and low-level services;
The Social Health Insurance Fund (SHIF), financed by contributions from formal and informal sector workers;
The Emergency, Chronic & Critical Illness Fund, designed to support high-cost or long-term care.
The contribution model is income-based: formal sector workers pay a percentage of their earnings, while informal workers are assessed through a means testing tool to determine fair contribution levels. The government has promised that people from vulnerable groups can contribute as little as KES 300 per month.
To ensure efficiency and accountability, the SHA is using digital systems for claims processing, allowing real-time tracking of reimbursements to health facilities. According to the Ministry of Health, SHA has already streamlined payments: though the law allows up to 90 days for claim settlement, verified claims are now being paid in under 30 days. Health Cabinet Secretary Aden Duale has described the new financing model as people-centred, equitable, transparent, and financially sustainable.