County public health facilities have until October 14 to complete new Social Health Authority (SHA) contracts, after Health Cabinet Secretary Aden Duale and governors ruled out another extension of the existing agreements.
The decision is part of a wider deal covering hospital payments, county oversight and compliance requirements as facilities enter SHA’s 2026–2029 contracting cycle, known as HAKIKA.
Under the agreement, clean claims are to be paid within 90 days of receipt. However, settlement remains dependent on available funds, with unpaid eligible claims recognised as liabilities for payment within the same financial year.
The agreement was reached on Monday, October 5, during a meeting between the Ministry of Health and the Council of Governors’ Health Committee, led by Mombasa Governor Abdulswamad Nassir.
Both levels of government committed to helping eligible facilities complete contracting in time to maintain uninterrupted services for SHA beneficiaries.
Counties retain oversight of hospital contracts
The agreement followed concerns governors raised in a September 28 letter to SHA Chief Executive Officer Mercy Mwangangi about the proposed contracting arrangements.
Each county facility will retain an individual SHA contract, while payments will continue going into its Facility Improvement Financing account.
The new arrangements recognise county governments’ role in authorising contracts. County health executive committee members are to coordinate legal review and clearance by county attorneys before agreements are signed.
SHA will also accept relevant documents held at county level, easing the burden on facilities that operate under county administrative structures.
For example, county KRA PINs and tax compliance certificates can cover facilities listed in a supporting county letter, while facilities with their own tax registration must provide their individual documents.
Limited grace period for missing documents
Facilities meeting the other contracting requirements will receive 30 days to submit outstanding NSSF, NEMA, fire safety, disability council and data protection documentation.
The concession delays submission of specified documents; it does not waive the facilities’ statutory obligations or extend the October 14 deadline for existing contracts.
Relevant licences for laboratory, pharmacy and imaging services remain required. Facilities will be contracted for services they are licensed to provide, while Level 4 and Level 5 hospitals will have three months to meet compulsory laboratory licensing requirements.
SHA contracting support clinics will run in every county through October 14. A joint technical committee bringing together SHA, governors and county health departments will address implementation problems.
Patient continuity and payment delays in focus
SHA had earlier extended the previous September 30 contracting deadline by 14 days, allowing facilities to continue operating under their existing agreements during the transition.
In announcing that extension, the authority directed providers that do not accept it to coordinate with SHA county managers on transferring patients receiving ongoing care to contracted facilities.
The new agreement requires clean claims to be handled in the order received. Where funds are insufficient, unpaid claims will be recorded as certified liabilities rather than cancelled, with settlement subject to appropriated funds.
Separately, governors committed to supporting Level 5 hospitals to complete migration to the Health Management Information System by October 30. This is a distinct deadline from the October 14 facility contracting cutoff.
