Private hospitals are threatening to withdraw from the government’s Social Health Authority (SHA) services from Monday, citing persistent system failures and KSh 30 billion in unpaid arrears from the now-defunct National Hospital Insurance Fund (NHIF).
- The warning comes amid growing frustrations over financial shortfalls and technical glitches that providers say have crippled service delivery.
- The Rural and Urban Private Hospitals Association (RUPHA), which represents a significant share of Kenya’s private and mission-based hospitals, announced its intention to suspend participation in SHA starting Monday if the government fails to address their concerns
- Compounding the crisis are decades-old arrears from NHIF, some dating back to 2017, which Lishenga claims have driven hospitals into financial distress.
“Hospitals are defaulting on bank loans, essential medicines are out of stock, and consultants haven’t been paid for years,” Brian Lishenga, RUPHA’s chairperson said on Thursday.
“The government has consistently ignored the critical issues affecting this new healthcare scheme, leaving patients to suffer,” he added.
The association’s latest review of SHA’s performance showed a decline, with its scorecard dropping from 46% in December to 44% in the seventh review. The association reports that only 46% of healthcare providers have received payments under SHA, while 86% of Level 2 hospitals—smaller community health centers—remain unpaid.
The association has also announced it will no longer serve civil servants, including police officers and teachers, under the Medical Administrators Kenya Limited (MAKL) program if the issues remain unresolved.
The Healthcare Crisis
RUPHA’s demands include the immediate clearance of NHIF debts and a review of SHA’s disbursement model to ensure timely and equitable payments. According to the association, 55% of healthcare providers believe settling old debts should be prioritized before further rolling out SHA services.
Technical failures within the SHA portal have also stoked discontent. About 83% of healthcare facilities reported patient verification hitches, with 59% citing missing dependents’ data. The portal’s functionality was rated at just 18%, with 89% of providers reporting frequent system downtimes and delays in processing claims.
Since SHA’s launch in October, private hospitals have voiced mounting frustrations over what they see as a flawed system. The government, however, has continued to call for patience, maintaining that the issues are fixable.
But for many providers, the stakes are too high. Without urgent government intervention, thousands of patients could soon find themselves without access to essential healthcare services.
In response, Health Cabinet Secretary Deborah Mulongo acknowledged the challenges, stating that the government was working on solutions but offered no specifics.
