Government Rolls Out Plan to Modernize Health Insurance

The Kenyan government has launched a sweeping reform of its public health insurance system under the umbrella of its Taifa Care universal health coverage (UHC) program. At the heart of the move is the transition from the old National Hospital Insurance Fund (NHIF) to a new Social Health Insurance Fund (SHIF), overseen by the newly established Social Health Authority (SHA).
Under the new SHIF model, contributions are now more equitable: formal-sector workers contribute a set percentage of their income, while informal and self-employed Kenyans have a more flexible payment option. For example, the government has set a minimum monthly contribution of KES 300 for low-income informal workers — a shift aimed at expanding coverage without overburdening the poor.
To ensure better financial sustainability and transparency, the Ministry of Health is introducing stricter oversight in how claims are processed. SHA has adopted digital platforms to speed up reimbursements and minimize fraud. Hospitals report that claims are now being settled in as little as 30 days, well below the previous 90-day benchmark.
The reform also brings an expanded benefits package under Taifa Care. Notably, mental health services have been integrated into the national health insurance cover — meaning treatments for depression, anxiety, and other conditions are now covered under SHIF.