Sidian Bank has moved to clarify its role in the rollout of the Social Health Insurance Fund (SHIF), following public debate over how contributions are being handled under the new health financing model.
In a statement, the lender emphasised that it does not hold or manage funds belonging to the Social Health Authority (SHA). Instead, its role is strictly limited to facilitating collections from employers and employees and remitting the money directly to SHA’s designated accounts.
“Sidian Bank only facilitates collections, remitting directly to SHA accounts. We do not hold or manage SHA funds,” the bank said.
The clarification comes amid heightened public scrutiny as the government transitions from the National Health Insurance Fund (NHIF) to the Social Health Insurance Fund. With the changeover, questions have been raised on transparency, security of funds, and the role of commercial banks in managing contributions.
Sidian Bank is among six financial institutions licensed by the Central Bank of Kenya (CBK) to handle SHIF remittances. The others are KCB, Co-operative Bank, Equity Bank, Absa, and Diamond Trust Bank (DTB). According to CBK guidelines, the selected banks are tasked with providing secure and efficient collection platforms to support compliance with the government’s new healthcare financing framework.
Concerns had emerged on social media suggesting that Sidian Bank, allegedly linked to a senior government official, was transacting over 80 percent of SHA funds. The bank has dismissed the claims, insisting its role is purely administrative and aligned with the framework established by CBK and the Ministry of Health.
The Social Health Authority, established to oversee the implementation of SHIF, has been mandated to ensure that funds are prudently utilised to enhance access to affordable and quality healthcare services. With public interest intensifying, stakeholders are calling for continued transparency in how contributions are collected, managed, and disbursed to healthcare facilities.
As the SHIF takes shape, financial institutions involved in the scheme are expected to play a crucial role in instilling public confidence. Sidian Bank’s clarification is seen as an attempt to reassure contributors that the funds remain secure and under the exclusive management of the Social Health Authority.
