March 7, 2026
Nairobi, Kenya
News

Private hospitals warn of shutdowns as unpaid claims pile up under Social Health Authority

Kenya’s private healthcare providers are raising serious concerns about what they describe as deep financial strain caused by unpaid claims from the Social Health Authority.

They say the growing crisis threatens to disrupt healthcare services across the country, leaving millions of Kenyans at risk.

In a communication to members, the Kenya Healthcare Federation explained that its network, which handles about 60 percent of medical care in the country, is at the edge of collapse due to mounting debts that were carried forward from the now-defunct National Health Insurance Fund.

According to the federation, the government has failed to act on President William Ruto’s directive issued in March that all debts owed to health facilities below ten million shillings be cleared.

Instead, hospitals continue to struggle under the weight of arrears that have reached a point they consider unsustainable.

They caution that if this situation continues, patients will experience reduced access to care and a sharp decline in the quality of services.

Some facilities have already shut their doors, laid off staff, or been pushed to auction due to their inability to stay afloat.

The federation also pointed to growing frustration within the sector, saying that some claims are rejected without proper reasons, while providers are unfairly branded as fraudulent.

Such actions, they argue, have scared away investors and weakened trust in the system.

To manage the crisis, the federation has suggested tough measures such as asking patients to sign agreements taking responsibility for their bills in case the Social Health Authority fails to pay, as well as switching patients back to cash payments if the authority continues defaulting.

They have also urged lawmakers to step in and hold the authority accountable, while demanding full transparency on payments, collections, and the performance of the health schemes it manages.

Without urgent solutions, they warn that Kenyans could be forced to pay directly out of pocket, a move that could be financially devastating for many families.

Still, the federation stressed that its members remain committed to their role in the health sector, calling themselves irreplaceable partners in ensuring access to treatment.The warning from private providers comes at a time of political tension in the sector.

Just a day earlier, Health Cabinet Secretary Aden Duale faced demands from a group of lawmakers under the Kenya Moja coalition to resign over alleged fraud at the Social Health Authority.

Duale dismissed the calls, accusing some legislators of trying to protect their own interests since some of their health facilities were reportedly flagged in the ongoing claims investigations.

The unfolding crisis now places both providers and government under pressure to act quickly in order to prevent a breakdown in Kenya’s healthcare system.

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