The Cabinet, on Tuesday, January 31, resolved to consolidate all government-funded schemes into one during a meeting at State House, Nairobi.
President William Ruto approved plans to aggregate the National Health Insurance Fund (NHIF) and the Linda Mama programme.
The new scheme would offer benefits and flexible payment plans to Kenyans subscribed to the new cover.
"Cabinet approved the consolidation of the existing State-sponsored health insurance schemes into a single pool with a harmonized benefits package and provider-payment mechanism or rates," the Cabinet despatch read.
Ruto explained that the move aligned with the government's plan to realise Universal Health Coverage (UHC). The pool of insurance will include an exclusive plan for vulnerable citizens.
"The consolidated programme will feature a Health Insurance Subsidy Program (HISP) for orphans and vulnerable children, older persons, and persons with severe disabilities," the Executive resolved.
Rutos changes come within a month of NHIF losing two high-profile clients - the National Police Service (NPS) and the Kenyan Prisons Service.
On matters of finance, the Cabinet gave the green light for the adjustment of the 2022/23 Financial Year Supplementary budget, ordering expenditures to be cut down by Ksh300 million.
"Cabinet noted that the proposed fiscal consolidation will be key to rationalizing our national debt and making it more sustainable," the despatch added.
Meanwhile, the 24 Cabinet Secretaries (CSs) implemented plans by Ruto to digitise all services. In line with the plan, Cabinet okayed the full rollout of the Ardhi Sasa Programme, which was in its pilot phase.
The meeting made history as it was the first ever paperless cabinet convention since the country's independents. Photos seen by Kenyans.co.ke revealed that the CSs used tablets during the sitting.
"The new order honours the Administration's pledge to lead the nation through a technological disruption as [artof the Bottom-Up Economic Transformation Agenda (BETA)," the despatch read in part.
