Rural and Urban Private Hospitals Association Chairman Brian Lishenga during an interview at The Standard Group Offices on February 25,2025.[Benard Orwongo,Standard]
Hospitals face closure over Sh76b State debts
National
By
Phares Mutembei
| Aug 23, 2025
Several private hospitals across the country risk closure due to delayed compensation by the National Government, an association has warned.
The Rural and Urban Private Hospitals Association of Kenya (RUPHA) raised concern over persistent delays in reimbursing its members billions of shillings in arrears owed under the Social Health Authority (SHA) and the defunct NHIF.
In a press statement issued in Meru, RUPHA, which brings together 700 private and faith-based hospitals warned that the unpaid claims have pushed many facilities to the brink of shutting down amid mounting debts.
RUPHA Chairman Dr Brian Lishenga said the national government owes private hospitals Sh33 billion in NHIF arrears and Sh43 billion in SHA liabilities, amounting to Sh76 billion.
Dr Lishenga, while calling for an end to what he termed a “war against private hospitals,” noted that private facilities, which provide 50 per cent of the country’s health services, continue to face discrimination in compensation. “Hospitals across Kenya are on the brink. Many have already shifted to cash-only payments, while others are preparing to shut their doors,” he said.
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The association further lamented that despite President William Ruto directing the settlement of all NHIF pending bills, the directive is yet to be implemented. RUPHA warned that mounting debts now threaten the survival of Kenya’s healthcare system under SHA.
Despite a directive that reimbursements be made on the 14th of every month, payments remain delayed, crippling hospitals. Since SHA’s inception in October last year, hospitals submitted claims worth Sh93 billion, but only Sh50 billion, 53 percent, has been reimbursed.
Persistent non-payment of Primary Healthcare claims in Mombasa, Kirinyaga, Embu, and Nandi, counties piloting the digital superhighway, has introduced new bottlenecks instead of easing processes.
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