Government Dismisses Private Hospital Claim After Suspending SHA

Health Cabinet Secretary Deborah Barasa, with Kenyatta National Hospital CEO Dr Evanson Kamuri, interacting with a mother at the hospital, January 16, 2025. Photo MoH

The Ministry of Health (MoH) has refuted allegations made by the Rural and Urban Private Hospitals Association of Kenya (RUPHA) that the government is indebted to them for Ksh30 billion.

In a statement issued on Tuesday, February 25, the Ministry announced that a consultative meeting took place on Monday, during which essential resolutions were reached to improve service delivery in RUPHA facilities.

The ministry also stated that Social Health Authority (SHA) services continue to be accessible in contracted hospitals.

“A consultative meeting was held on February 24, 2025, between the Ministry of Health and RUPHA leadership, where key resolutions were made to enhance service provision in RUPHA facilities. We wish to clarify that the Government does not owe RUPHA Ksh30 billion, as asserted,” the statement read in part.

The ministry also reassured the private hospital that the government is dedicated to resolving outstanding National Health Insurance Fund (NHIF) claims.

Photo Collage of CS Barasa and SHA logo : Photo courtesy

“The government remains committed to honoring undisputed NHIF claims. As of October 4, 2024, Kes 10 billion out of Kes 19 billion in undisputed NHIF claims has already been paid.

“SHA is working with healthcare providers to finalize NHIF pending claim reconciliations, which are currently 60% complete. Healthcare facilities must provide proof of archived claims to facilitate verification before payments are processed,” the Ministry added.

Last week Over 600 private rural hospitals affiliated with the Rural and Urban Private Hospitals Association of Kenya (RUPHA) have declared their departure from the Social Health Authority beginning Monday, February 24.

The hospitals have given the government a 3-day ultimatum to settle NHIF arrears totaling Sh30 billion; otherwise, patients will be required to pay in cash if their warnings are carried out.

The head of RUPHA also mentioned that certain civil servants with government-supported insurance will be denied treatment beginning Monday, February 24.

“We will stop providing medical services (to some civil servants) using the government insurance from Monday,” announced Rev Joseph Kariuki, Deputy Chairperson, RUPHA.

This action was required due to the government's inability to pay for the services provided last year.

"It follows months of failed engagements, unfulfilled promises, and growing financial distress among hospitals, which now threatens the very survival of healthcare institutions across Kenya," RUPHA.