The agency was conceived by the Kaduna State Government for all residents of the State in line with the global agreement by the World Health Organization member countries (including Nigeria) to attain Universal Health Coverage for citizens of the world.

The journey for the creation of the Kaduna State Contributory Health Scheme began with the declaration by the National Health Insurance Scheme that all State Governments in Nigeria have autonomy to design a Scheme that will reflect the health priorities of the State and establish an Agency that will govern the Scheme.