Cash crisis hits NHIF, board forced to reduce spending


The National hospital and insurance fund is set to cut sh.1.2 billion as part of austerity.

This is according to the Fund’s board vice chair Roba Duba.

Speaking in Nairobi during a press briefing, Duba said that the cut will affect the advertisement section by reducing it from 753 million to 653 million, bank charges and commissions from 315, million in the 2018 /2019 financial year to 45 million in 2020, while travel and accommodation spending has been cut by 22 million shillings.

“NHIF as a state corporation is exposed to cartels with vested interests which the board has been fighting,” Duba said

Report by A Health Financing Reforms Expert Panel (Hefrep)  pointed that mismanagement of funds, fraud, and abuse of office are some of the major issues hindering the provision of quality services at the National Hospital Insurance Fund (NHIF).

Duba pointed out that the board is fast-tracking reforms as per recommendations made by the panel by accrediting hospitals that have transitioned to the ministry of health and other health regulatory bodies.

He said that the fund is initiating an ICT system to enable the strategic purchase of a universal health care package.

This comes just a few months after the fund was put on the spot over fake dependants.