President Ruto starts plan to repeal NHIF, replace it with 3 different organisations

President Ruto chaired a Cabinet meeting at Kakamega State Lodge on Tuesday, August 29 which approved the setting up of different funds to replace the NHIF which was first established in 1966.

By revoking NHIF and replacing it, President Ruto seeks to attain Universal Health Coverage (UHC) as set out within his plan for a healthier nation espoused under the Bottom Up Economic Transformation Agenda.

According to a communication from the Cabinet Office, the meeting approved the setting up of the following funds to replace NHIF.

Primary Healthcare Fund
Social Health Insurance Fund
Emergency, Chronic and Critical Illness Fund.

President William Ruto with Health CS Susan Nakhumicha at State House during a past meeting President William Ruto with Health CS Susan Nakhumicha at State House during a past meeting Pulse Live Kenya

The funds will be created after Parliament passes the following bills to pave the way for the paradigm shift in healthcare financing in the country.

The Primary Health Care Bill, 2023;
The Social Health Insurance Bill, 2023.
The Facility Improvement Financing Bill, 2023
The Digital Health Bill, 2023;

“These bills usher in a paradigm in the legal and institutional framework for healthcare in Kenya,” Cabinet noted.

The Digital Health Bill, 2023, will enable the development of standards towards the provision of m-health, telemedicine, and e-learning in healthcare.

READ: Health CS suspends 8 NHIF managers after NTV exposé

“This new architecture is expected to provide a framework for improved health outcomes and financial protection of families in fidelity to the State's solemn duty to guarantee the health and welfare of all her citizens,” Cabinet dispatch read.

According to State House Spokesperson Hussein Mohamed the three funds result from the reorganization of the pre-existing funds.

"The reorganization of the Sh550 billion that constitutes our total health expenditure, to achieve Universal Health Coverage. The Primary Care Fund will be funded from the Exchequer," he stated.

Earlier in 2023, Health CS Susan Nakhumicha announced plans to rebrand NHIF to the National Social Health Insurance Fund (NSHIF).

NHIF offices Pulse Live Kenya

However, with the creation of the Primary Healthcare Fund, Social Health Insurance Fund and the Emergency, Chronic and Critical Illness Fund, the government seems to have abandoned the plan to rebrand NHIF and repeal it completely.