Govt Responds After CS Nakhumicha's Alarm On Broke NHIF

The National Treasury, on Saturday, June 10, stepped in to stop the manifestation of a looming crisis in the Health sector a day after Health Cabinet Secretary (CS) Susan Nakhumicha revealed that the government was too broke to remit money to the National Health Insurance Fund (NHIF).

In a statement, CS Nakhumicha disclosed that the Treasury had remitted funds to the cash-strapped parastatal, allowing it to settle claims by various service providers across the country.

"I wish to thank the National Treasury for remitting funds to the NHIF in time to enable the settlement of claims by various service providers nationwide. 

"Facilities claims will be settled effective immediately, but I must reiterate that we will ensure prudence and accountability in this exercise," she stated in part.

She added that all claims would be thoroughly verified before settlement as part of the government's motive to seal all loopholes involved in corruption and flush out providers making irrelevant claims.

She then ordered health facilities to resume operations, warning them against turning away patients with NHIF cards.

"As such, all claims will be thoroughly verified before settlement to enable us to utilize the available resources in the best way possible. In the meantime, I wish to request all facilities to resume services to Kenyans as disbursements continue," she added.

Nakhumicha further noted that the Ministry of Health remains committed to the pledge of Universal Health Coverage (UHC) and will ensure that NHIF executes its mandate with utmost objectivity, transparency and excellence, towards the Afya Mashinani promise.

A section of Kenyans had protested the move demanding the immediate release of funds to honour their claims.

During an interview with a local radio station on Friday, June 9, Nakhumicha admitted that the NHIF was financially constrained owing to the tough economic situation in the country.

"Kenya is broke and that is the fact that no one can deny at all. The cash crisis has even affected NHIF and that is the whole truth.

"We are working on all available interventions to see how we will address the situation. One of the best solutions we are thinking about is the introduction of the Finance Bill 2023. That’s why our President is so passionate about it," she said.

She however promised to address the situation following a meeting with President William Ruto.

"I want to assure Kenyans that we sat down with the President this week and informed him about the necessity of the health sector in the country.

"I told him that he should prioritize the matter and look for funds to pay NHIF. He agreed," she added, claiming that the permanent solution would be the adoption of the Finance Bill 2023.

She also revealed that hospitals owed NHIF close to Ksh20 billion. Currently, close to 80 per cent of Kenyans depend on the national insurer to pay for their health services.

With the stalemate kidney failure patients were feared to suffer the most as on average a single dialysis session costs between Ksh9,500 to about Ksh16,000. However, with NHIF coverage patients don’t pay anything unless they exceed the three required sessions per week.

Most of the private hospitals had already withdrawn NHIF and had asked patients to either pay cash or seek services elsewhere.

Ruto, in his pledge, vowed to reform the NHIF sector, which he termed was key to helping Kenyans access affordable health care. The President proposed to reduce NHIF contributions for low-income earners from Ksh500 to Ksh300 starting July 2023.