Current Date: February 28th, 2025

Healthcare Standoff: Private Hospitals Halt SHA Services Over Unpaid Ksh 30B Debt

Healthcare Standoff: Private Hospitals Halt SHA Services Over Unpaid Ksh 30B Debt

Private hospitals across Kenya have suspended medical services under the Social Health Authority (SHA) and Medical Administration Kenya Limited (MAKL) due to unpaid arrears amounting to Ksh 30 billion, plunging the country into a deepening healthcare crisis.

Why Private Hospitals Are Suspending SHA Services

In a statement issued on Monday, February 24, the Kenya Association of Private Hospitals (KAPH) attributed the suspension to financial instability, unresolved inefficiencies in the NHIF-SHA transition, and a lack of a clear reimbursement framework for outpatient services.

“This decision comes in response to persistent financial instability that has placed the quality, accessibility, and sustainability of healthcare services at grave risk. The unresolved inefficiencies in the NHIF-SHA transition, outstanding NHIF arrears of Ksh 30 billion, and long-standing unpaid claims under MAKL have left private hospitals struggling to operate,” said KAPH Chairman Erick Musyima.

Impact on Millions of Kenyans

Musyima emphasized that the suspension was a last resort after months of failed negotiations with the government, warning that the crisis could cripple the 52% of Kenya’s population who rely on private healthcare facilities.

“This is not a decision we have taken lightly. It follows months of unsuccessful negotiations with government authorities, repeated unfulfilled promises from MAKL, and an increasing financial burden that now threatens the very survival of private healthcare facilities across Kenya,” he stated.

Threat to Universal Health Coverage (UHC)

KAPH further warned that the crisis undermines Kenya’s Universal Health Coverage (UHC) goals and weakens key pillars of the World Health Organization’s (WHO) healthcare framework.

Despite the suspension, private hospitals remain open to dialogue with the government to resolve the systemic failures that have led to the crisis.

“The sustainability of private hospitals and the health and well-being of millions of Kenyans depend on immediate action,” KAPH concluded.