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The Ministry of Health has dismissed a claim by the Rural & Urban Private Hospitals Association of Kenya (RUPHA) that the government owes hospitals Sh30 billion in unpaid bills.
In a statement on Tuesday, February 25, the ministry said it is committed to settling pending National Health Insurance Fund (NHIF) claims after a reconciliation process, adding that Social Health Authority (SHA) services remain available in contracted hospitals.
The statement comes a day after RUPHA announced an indefinite suspension of services under the SHA insurance scheme starting February 24, citing unpaid claims and an unsustainable reimbursement model.
RUPHA, which represents private and faith-based hospitals, said the government’s failure to settle arrears and address operational concerns had made it impossible to continue offering services.
“The continued failure to resolve critical challenges in the SHA transition is directly endangering patient care and hospital sustainability,” said RUPHA Chairman Brian Lishenga.
“Hospitals have lost staff, defaulted on loans, and faced medicine shortages due to delayed payments.”
Hospitals have struggled with unpaid NHIF claims dating back to 2017, pushing many into financial distress.
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RUPHA noted that pharmaceutical suppliers had blacklisted hospitals, tax liabilities had mounted despite unpaid claims, and specialist doctors remained without pay for years.
SHA, which replaced NHIF, has declined to take responsibility for pending payments, further straining the sector.
Health ministry, however, maintained that the government is working to streamline the transition from NHIF to SHA, ensuring that payments are made in accordance with verified claims.
It urged hospitals to continue offering services as reconciliation efforts progress.
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