This study examines the effectiveness of cloud computing for data security in healthcare, specifically through the M-TIBA platform—a cloud-based service enabling users to manage healthcare finances and data. While cloud technology offers significant benefits in accessibility and scalability, its application in healthcare raises critical concerns about data security and user trust. Current literature and industry practices reveal a gap in user awareness and limited digital literacy, which undermine the effective adoption of cloud technologies in healthcare. Thus, the primary problem addressed is how cloud computing characteristics, security measures, and user education impact data security and trust among healthcare users in Kenya. The study aims to address three key objectives: to assess how user awareness influences security effectiveness within M-TIBA, to evaluate the current security measures’ impact on user trust, and to investigate how cloud computing’s intrinsic characteristics affect data security. The research builds on foundational theories, including the Technology Acceptance Model (TAM) and the Information Systems Success Model (ISSM). TAM provides insights into factors that influence technology adoption, while ISSM explores how information systems succeed based on system quality, service, and information. Using a mixed-methods design, the study integrates both quantitative and qualitative data collection, with structured questionnaires and semi-structured interviews. The study targeted users of the M-TIBA platform, healthcare providers, and policymakers/IT professionals. The sample size was calculated at 450 participants, with an 80% anticipated response rate resulting in 360 usable responses. Quantitative data analysis was supported by statistical methods to measure correlations between digital literacy, security awareness, and perceived security measures, while qualitative data helped capture nuanced perspectives on trust and technology adoption. The findings reveal that higher digital literacy is linked to increased adoption and trust in cloud services, while limited user awareness remains a barrier to securing data effectively. Additionally, most users expressed moderate satisfaction with M-TIBA’s security measures but emphasized a need for increased transparency on data protection practices. Security concerns such as data breaches and unauthorized access were notable among healthcare providers, suggesting that security protocols alone do not fully alleviate user concerns without proper education and engagement. In conclusion, the study highlights the critical role of user education in enhancing cloud security effectiveness and recommends implementing routine digital literacy programs, particularly in healthcare settings. Furthermore, policymakers should prioritize developing comprehensive security protocols tailored to the unique requirements of healthcare data. Enhanced transparency and continuous investment in advanced security measures are essential to fostering trust and ensuring sustainable cloud adoption in healthcare.