Hospitals Embrace Electronic Payments to Improve Efficiency

Hospitals across Kenya are increasingly turning to electronic payment systems in a bid to streamline revenue collection and reduce financial leakage. Counties such as Meru and Isiolo have introduced cashless billing at major public hospitals, enabling patients to pay via mobile money or other digital channels instead of paying in cash at the facility. The change aims to boost transparency, strengthen accountability and secure finances within the health system.
This shift to digital payments is part of a broader push by the Ministry of Health to upgrade hospital operations and financial systems. Through its digitisation initiative, the Ministry is rolling out a Health Information Exchange (HIE), electronic claims processing, and a non‑paper-based workflow that enables real-time tracking of service delivery and payments. These reforms are also helping accelerate reimbursements: the Social Health Authority (SHA) has reported reducing its claim settlement times from the statutory 90-day window to under 30 days, thanks to automated systems and tighter financial controls.
Government officials say embracing electronic payments will deliver multiple benefits. Real-time billing and payments help hospitals maintain financial stability, minimize theft, and ensure that funds are directed where they are most needed — ultimately contributing to better service delivery. Cabinet Secretary Aden Duale has emphasised that the new system protects both patients and public funds by reducing opportunities for fraud.
Looking ahead, health leaders see cashless payments as a key pillar in Kenya’s drive toward Universal Health Coverage (UHC). As digital infrastructure expands, more hospitals are expected to adopt these systems, while the Ministry continues to train administrators and health workers to manage and optimize the technology. If successful, the move could set a new standard for how healthcare is financed and managed in the country.