In October 2024, Kenya launched significant reforms in its health financing system by establishing the Social Health Authority (SHA), replacing the long-standing National Hospital Insurance Fund (NHIF) that had been in existence since 1966. Anchored in the Social Health Insurance (SHI) Act of 2023, these reforms are central to the country’s efforts to strengthen financial protection, promote equity, and advance progress toward Universal Health Coverage (UHC) through strategic health purchasing (SHP). This policy brief summarizes key features of Kenya’s SHI reforms, highlights progress and emerging challenges, and outlines opportunities to optimize purchasing functions and health system performance.