Kenya's M-TIBA Refunds Health Savings to Thousands

Thousands of Kenyans who saved money for healthcare are getting their funds back as M-TIBA closes its health savings wallet and returns every shilling to users.

The mobile platform, run by healthtech company CarePay, began automatically refunding customers on April 8. Users woke up to find their health savings deposited directly into their M-PESA mobile wallets without needing to request withdrawals.

M-TIBA first notified users on March 3 that it would discontinue its My Health Funds wallet by March 8, 2026. The company gave customers the option to withdraw their balances themselves or receive automatic refunds, and promised all withdrawals would be completely free.

The platform launched in 2015 with a simple but powerful idea: help people set aside money that could only be used for healthcare. Users could save small amounts over time, and employers or donors could contribute too, creating a safety net for medical expenses across a network of providers.

Now CarePay is shifting its focus entirely to managing health insurance rather than individual savings accounts. The company says this change will help more people access affordable healthcare, though it hasn't provided detailed alternatives for savers who cannot afford traditional insurance products.

The transition comes after M-TIBA faced challenges in 2025, including a cyber attack that exposed user data. CarePay has committed to deleting personal information once all accounts are closed, following its privacy policy.

For any funds that cannot be delivered due to verification issues, M-TIBA will transfer them to Kenya's Unclaimed Financial Assets Authority. This government agency holds unclaimed money safely until owners come forward to claim it, ensuring no one loses their savings.

The Bright Side

While losing a useful savings tool is disappointing for users, M-TIBA's commitment to returning every cent shows how a company can handle a difficult transition responsibly. Instead of dragging out the process or making customers jump through hoops, CarePay is proactively sending money back and ensuring unclaimed funds go to a safe government authority.

The company also made all withdrawals free, removing a barrier that often frustrates customers during service closures. This approach protects the people who trusted M-TIBA with their healthcare savings, especially those managing tight budgets.

The shutdown reflects M-TIBA's bet that insurance management will reach more Kenyans than individual savings wallets, potentially creating access to care for even more people in the long run.