Why SHA Is Fueling Healthcare Technology Boom in Kenya

If Kenya’s transition to the Social Health Authority (SHA) succeeds as planned, it could reshape the country’s healthcare sector by accelerating investment in medical technology, digital health systems and diagnostic equipment as hospitals adapt to a new reimbursement model.

Healthcare providers are increasingly upgrading electronic medical records (EMRs), laboratory systems, imaging equipment and revenue cycle management platforms to comply with SHA’s data-driven payment framework, which links reimbursements to verified services and digital reporting.

The investment wave comes as the government rolls out Universal Health Coverage (UHC) through SHA, replacing the defunct National Hospital Insurance Fund (NHIF). According to the Ministry of Health, more than 31 million Kenyans have registered under SHA, while 11,034 health facilities have been contracted to offer services.

“The transition to SHA marks a decisive turning point for our national healthcare ecosystem. Healthcare facilities are under immediate pressure to adapt to new reimbursement structures, expanded benefit packages and digitised claims processing,” said Medical Technology Industry Association of Kenya (MEDAK) Chairperson Dr Janki Chauhan.

Industry stakeholders say the reforms represent one of the biggest technology-driven shifts in Kenya’s healthcare sector in years, creating fresh opportunities for medical equipment manufacturers, software developers and healthcare technology providers.

Since October 2024, SHA has paid out more than Sh147 billion in claims, giving hospitals greater visibility over patient volumes and expected revenue while encouraging investments that improve operational efficiency.

Hospitals Upgrade to Meet SHA Requirements

Unlike the previous NHIF system, payments to primary healthcare facilities are now based on verified patient visits rather than insurance membership. Claims processing has also been reduced from 90 days to 30 days, improving cash flow but requiring providers to submit accurate digital records.

The shorter reimbursement cycle has prompted hospitals to invest in systems capable of capturing, verifying and transmitting patient information to minimise delayed or rejected claims.

Demand has consequently risen for electronic medical records, hospital information management systems, pharmacy automation, laboratory information systems and advanced diagnostic equipment, including CT scanners and MRI machines.

Healthcare providers are also strengthening claims management software to maximise revenue collection under the new financing framework.

Dr Chauhan said hospitals are increasingly investing in modern technologies that improve efficiency while ensuring compliance with SHA’s reimbursement model.

The authority’s structured tariffs are also influencing procurement decisions. Hospitals are reimbursed fixed amounts for services such as inpatient care, maternity, dialysis, oncology and diagnostic imaging, making digital infrastructure essential for accurate claims processing.

For example, inpatient care at Level Four to Six hospitals attracts between Sh3,500 and Sh5,000 per day, while normal deliveries are reimbursed at Sh11,200, Caesarean sections at Sh32,600, MRI scans at Sh11,000 and CT scans at Sh9,600.

Healthcare Reforms Create New Investment Opportunities

Healthcare providers say integrated digital systems linking patient registration, diagnostics, treatment records and claims submission have become increasingly important under SHA.

The investment trend is expected to feature prominently during the World Health Expo (WHX) at the Kenyatta International Convention Centre from September 16 to 18, where hospitals, technology firms and medical equipment manufacturers are expected to negotiate new supply contracts.

The exhibition, now in its 10th edition after rebranding from Medic East Africa, is expected to attract more than 5,500 delegates and over 200 exhibitors from 30 countries.

Organisers estimate business worth $84.2 million was generated during last year’s event, highlighting the growing commercial opportunities emerging from healthcare reforms across East Africa.

The shift is also being mirrored across the region. Ethiopia has expanded its Community-Based Health Insurance programme to cover more than 54 million people, while Tanzania’s pharmaceutical market is projected to grow from $1.08 billion in 2023 to $1.55 billion by 2028. Uganda is also increasing investment in hospital infrastructure despite budget constraints.

Tom Coleman, Portfolio Director for Healthcare at Informa Markets, said healthcare financing reforms across East Africa are already influencing procurement decisions.

“Kenya’s SHA rollout, Ethiopia’s insurance expansion, Tanzania’s pharmaceutical sector growth and Uganda’s infrastructure investments are all driving urgent procurement needs. Hospitals are looking to align their investments with the new funding models before the next fiscal year,” he said.