Kenya’s Health Sector Faces Critical October 14 Deadline for SHA Facility Contracts
Nairobi — A pivotal deadline looms for county public health facilities in Kenya, with the Ministry of Health and the Council of Governors (CoG) establishing October 14, 2026, as the absolute cut-off for existing Social Health Authority (SHA) contracts. These agreements, which had been extended, will not be subject to further renewal, signalling a critical juncture for service continuity and compliance within the nation’s healthcare system.
This firm stance emerged from a high-level meeting between Health Cabinet Secretary Aden Duale and the CoG Health Committee Chair, Mombasa Governor Abdulswamad Nassir. The discussion centred on the implementation of the SHA’s 2026-2029 contracting cycle, codenamed HAKIKA. The joint statement underscored a shared objective: to ensure that all eligible county health facilities are contracted, receive timely payments, and can provide uninterrupted services to SHA beneficiaries. This directive carries significant implications for legal counsel, compliance officers, and corporate executives overseeing healthcare providers and related investments.
The Ministry and the CoG reaffirmed the devolved nature of county health services, emphasising that intergovernmental relations will continue to be governed by consultation and cooperation. To facilitate the contracting process, SHA will establish HAKIKA contracting clinics in every county, operating until the October 14 deadline. Weekly progress updates will be provided to the Council of Governors, offering transparency on the status of eligible facilities. A joint technical committee, comprising representatives from SHA, the CoG, and county health departments, has been tasked with coordinating implementation and resolving any technical or operational challenges.
Each county facility will secure an individual contract with SHA, with payments directed to their respective Facility Improvement Financing accounts. To expedite the process, SHA will accept relevant documentation already held at the county level. Facilities that meet the primary contracting requirements but have outstanding documentation from entities such as NSSF, NEMA, fire safety authorities, NCPWD, and ODPC will be granted 30 days for conditional compliance. However, this grace period does not absolve them of their statutory obligations.
Mandatory licences for laboratory, pharmacy, and imaging services remain a prerequisite for contracting, with facilities only to be contracted for services for which they hold valid licences. On the critical issue of claims processing, the parties agreed that clean claims will be settled within 90 days of receipt, processed in the order they are received. In instances of insufficient funds, unpaid clean claims will be recognised as certified liabilities and carried forward for settlement within the same financial year, contingent upon appropriated funds. Furthermore, the Council of Governors has committed to supporting Level 5 hospitals in completing their transition to the Health Management Information System by October 30, 2026. A comprehensive progress review by the Ministry of Health and the CoG is scheduled before the October 14 deadline, as the new contracting cycle prepares to take effect.
