Healthcare facilities across Kenya have been granted more time to complete their contracting process with the Social Health Authority (SHA), after the agency pushed the deadline to December 31, 2026, sparing providers an immediate lapse of existing agreements and giving them more time to prepare for the next phase of the health financing system.
The decision, announced on Thursday, October 15, allows contracts that were scheduled to expire on October 14 to remain active until the end of the year.
The extension is intended to help hospitals and other health facilities clear pending requirements while continuing to offer services to patients covered by SHA.
In a notice issued on Thursday, SHA Chief Executive Officer Dr Mercy Mwangangi confirmed the revised timeline, saying the transition period for existing healthcare provider contracts had been extended.
“The Social Health Authority (SHA) informs all healthcare providers that the transition period for existing healthcare provider contracts, previously scheduled to lapse on 14th October 2026, has been further extended to 31st December 2026,” the notice stated.
The latest move follows an earlier government position that the existing agreements would not be extended beyond October 14. Providers had therefore been working against the initial deadline to complete the requirements needed to continue operating under the authority's contracting system.
The new arrangement gives facilities additional time to resolve pending issues and finalise their applications without an immediate break in their existing contractual arrangements.
Hospitals retain existing contractual terms
Under the extension, healthcare provider contracts covering the 2024–2026 period will remain in force through December 31, 2026.
Facilities with valid agreements can continue serving SHA beneficiaries under the current arrangements as they work to meet the conditions for the next contracting period.
The new contracting cycle is scheduled to begin on January 1, 2027, and SHA has directed providers to ensure their replacement contracts are completed, signed and effective by December 31.
The additional time is expected to ease the pressure on facilities that had been trying to meet the previous deadline while dealing with outstanding paperwork and other challenges in the contracting process.
It also gives hospitals and other providers a clearer timeline for completing the transition as the authority moves towards the next phase of its contracting framework.
However, the extension does not exempt facilities from meeting the required conditions. Providers must still complete the necessary procedures and secure new agreements before the end-of-year cutoff.
Mandatory documents still required
SHA has maintained that all healthcare providers must submit the documents required for contracting despite the additional time granted.
The authority has also ended the earlier moratorium on selected documents, meaning facilities can no longer rely on that temporary arrangement to delay submitting the required paperwork.
Hospitals and other health facilities have been urged to check their applications and ensure all mandatory documents are in place before the revised deadline.
The requirement places responsibility on providers to use the extended period to resolve any gaps that could hold up the approval and signing of their new contracts.
SHA has pledged to continue assisting facilities during the transition to help them complete the process.
Providers that need support have been directed to visit the ongoing HAKIKA contracting clinics at SHA county offices, where they can seek guidance on outstanding requirements and the steps needed to finalise their applications.
The clinics form part of the wider effort to help healthcare facilities move to the new contracting arrangements before the next cycle begins.
SHA assures providers over valid claims
The authority has also assured healthcare facilities that valid claims lodged during the extension period will be honoured.
The commitment is intended to give providers clarity on payments as they continue offering services while working to complete their contracting obligations.
SHA has further confirmed that beneficiaries will continue accessing services at facilities with valid contracts during the extended period.
The assurance offers temporary certainty to both healthcare providers and patients, who could have faced uncertainty if the existing agreements had expired without a transition arrangement.
Nevertheless, facilities will need to meet all outstanding conditions and have their new contracts in place by December 31 to prepare for the contracting cycle that begins the following day.
HAKIKA reforms move ahead
The extension comes as SHA continues rolling out its 2026–2029 healthcare provider contracting framework, known as HAKIKA, which was introduced in September alongside a new electronic contracting platform.
According to the Ministry of Health, the framework seeks to improve the working relationship between SHA and healthcare providers by setting clearer contractual duties, strengthening transparency and creating more predictable payment arrangements.
Through the electronic platform, providers can submit applications, upload supporting documents, verify licences, sign contracts and monitor the progress of their applications digitally.
The changes followed concerns from healthcare providers about tariffs, delays in claims processing and payments, pre-authorisation procedures, the reliability of the system and the process of being recognised as an approved provider.
The contracting reforms are intended to provide a clearer process for facilities seeking to meet SHA's requirements and complete their agreements.
On October 5, Health Cabinet Secretary Aden Duale and the Council of Governors’ Health Committee had agreed that the existing contracts would not be extended beyond October 14.
The government had also established HAKIKA contracting clinics in counties to help healthcare providers complete the transition before the initial deadline.
However, the announcement made on October 15 changes that position, allowing the existing contracts to continue until December 31.
The extension gives providers about two and a half months to address outstanding requirements before the new contracting cycle starts on January 1, 2027.
SHA said it would continue offering guidance and assistance throughout the transition, with the aim of ensuring that patients do not lose access to healthcare services as facilities complete the move to the new arrangements.