President William Ruto has approved KSh 4 billion to settle pending medical bills left behind by the now-defunct National Health Insurance Fund (NHIF).
This is after the approval of the Supplementary Appropriation Bill, 2026 by President Ruto on Wednesday, April 8th.
As per the bill, the extra budget will result in an increased expenditure amounting to KSh 393 billion, bringing the total budget up to KSh 4.69 trillion from the initial KSh 4.3 trillion.
“Many of the hospitals had been underpaid for their services at the time when they were being moved under the Social Health Authority,” President Ruto said in a statement to members of his cabinet
When NHIF ceased its operations in November 2024, it left behind some KSh 33 billion in outstanding medical arrears. By the first quarter of 2025, the government had managed to settle the KSh 18.2 billion in undisputed claims.
However, an additional KSh 10 billion was paid out in settling mostly small claims amounting to less than KSh 10 million each. Later, in March of this year, Parliament approved an additional KSh 5.3 billion to speed up the clearing of the remaining arreas
In addition, the following budgetary allocations are also included in the supplemental budget as follows:
Doctors’ internship program: Ksh 5.4 billion making the total Ksh 9.8 billion in order to enable the posting and pay salaries of interns in different institutions in the country.
Moi Teaching and Referral Hospital: Ksh 2.5 billion to enable the activities undertaken in the institution.
Vaccination program: Ksh 2.6 billion to increase preventive health care services.
Improvement of level four hospitals: Ksh 675 million.
