Government Denies Owing Private Hospitals Sh30 Billion As SHA Treatment Suspension Continues

The government has denied claims that it owes private hospitals Sh30 billion, even as healthcare facilities continue to suspend treatment under the Social Health Authority (SHA).

In a statement on Tuesday, SHA encouraged patients to seek treatment at public hospitals, where services remain free. This comes after the Rural Private Hospitals Association of Kenya (RUPHA) suspended SHA treatment on Monday, citing unpaid arrears dating back to last year.

The Kenya Association of Private Hospitals (KAPH) also announced the suspension of SHA and Medical Administrator Kenya Limited (MALK) services, following a resolution made during a Special General Meeting (SGM) held on February 24, 2025. KAPH Chairman Erick Musyima said the decision was driven by financial instability that has affected service delivery, leading to staff layoffs, salary delays, medical supply shortages, and loan defaults.

Musyima attributed the crisis to the transition from the National Health Insurance Fund (NHIF) to SHA, which he said has been marred by inefficiencies, unclear reimbursement structures for outpatient services, and pending NHIF payments amounting to Sh30 billion. He noted that despite multiple negotiations, private hospitals have yet to receive promised payments from the government.

“KAPH is ready and willing to engage in meaningful discussions with relevant authorities to urgently address these systemic failures and prevent further deterioration of healthcare services in Kenya,” Musyima stated.

However, the government dismissed claims of a Sh30 billion debt, saying payments to private hospitals are being processed accordingly. It also announced plans to train RUPHA-affiliated facilities on claim management to improve accuracy and reduce delays.

According to SHA, it has already cleared 60 percent of NHIF’s pending bills, amounting to Sh10 billion out of Sh19 billion. The agency further disclosed that it has disbursed Sh1.3 billion to primary healthcare facilities, including government hospitals and select private Level 4 facilities, with 51 percent of funds allocated to private providers.

“We wish to inform the public that primary healthcare services remain available at all government facilities free of charge, with no limits, as long as one is registered with SHA,” the statement read.