Legislators Move To Resolve Standoff Between Govt And Private Hospitals

A parliamentary committee has stepped in to mediate a dispute between the government and private healthcare providers over unpaid Social Health Authority (SHA) insurance claims.

The National Assembly Health Committee, chaired by Endebess MP Robert Pukose, has pledged to engage senior officials from the Ministry of Health and the National Treasury to find a solution to the crisis.

Committee Vice Chairperson, Chuka/Igambang’ombe MP Patrick Munene, announced the decision during a meeting with representatives from the Rural and Urban Private Hospitals Association of Kenya (RUPHA) and the Kenya Association of Private Hospitals (KAPH).

Last week, RUPHA and KAPH—representing over 1,000 private healthcare facilities—declared an indefinite suspension of SHA services due to unpaid claims amounting to Sh30 billion.

They also cited an unsustainable reimbursement model as a key challenge.

RUPHA, which includes faith-based hospitals, warned that the government’s failure to clear arrears and address operational inefficiencies had made it impossible for them to continue offering services under the scheme.

During the session, committee members, led by Munene, acknowledged the financial strain on hospitals due to the outstanding payments but expressed optimism that a resolution could be reached.

“Kenyans are suffering because of the suspension of SHA services by private hospitals. As a committee, we will meet the Ministry of Health and demand a clear roadmap for settling the pending claims,” Munene said.

He further insisted that Treasury officials must be present at the meeting to provide a firm commitment on when and how the funds owed to hospitals would be disbursed.

The meeting also included representatives from the Kenya Healthcare Federation, the Rural Private Hospitals Association, and the faith-based Health Services Consortium, which brings together the Kenya Conference of Catholic Bishops (KCCB), the Christian Health Association of Kenya (CHAK), and the Supreme Council of Kenya Muslims (SUPKEM).

In a joint submission, healthcare stakeholders highlighted several challenges affecting the rollout of the new health system and called for a transparent and equitable financing model to sustain quality healthcare services.

“To restore confidence in the national health financing system, decisive policy interventions are required,” they said in a joint statement.

“Addressing reimbursement delays, governance gaps, and operational inefficiencies must be prioritized to ensure a sustainable, equitable, and effective healthcare system,” they added.

The committee has directed stakeholders to compile a comprehensive document outlining their concerns under the SHA system. Munene assured them that their grievances would be tabled at an upcoming meeting with ministry officials.