Private Hospitals Halt SHA Credit, Demand Cash Payments Amid Sh76 Billion Debt Row

By CHURCHILL SIMIYU, Reporter
Nairobi, September 22, 2025 — Millions of Kenyans risk being locked out of healthcare after private and faith-based hospitals suspended treatment on credit for patients under the Social Health Authority (SHA), citing massive unpaid claims by the State agency.

The Rural and Urban Private Hospitals Association of Kenya (RUPHA) on Monday announced that all services for SHA beneficiaries will now be offered strictly on a cash basis until further notice.

RUPHA Chairperson, Dr. Brian Lishenga, said hospitals are struggling to stay afloat due to delayed reimbursements from the Authority.

“SHA owes private hospitals Sh43 billion in verified claims, with an additional Sh24 billion under review. When pending liabilities dating back to 2017 are included, the total debt rises to nearly Sh76 billion,” Dr. Lishenga told reporters in Nairobi.

He explained that repeated engagements with SHA had failed to yield a resolution, leaving hospitals unable to sustain operations without immediate cash flow.

The move marks a sharp escalation in the standoff between private hospitals and the government health insurer. Analysts warn it could leave millions of Kenyans—especially those relying on SHA for affordable treatment—without access to critical healthcare.
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“We regret the inconvenience this may cause but our decision is guided by the need to keep hospitals running, ensure essential supplies and equipment are available, and protect the welfare of our staff,” Dr. Lishenga added.

The suspension comes at a time when the government is under pressure to stabilize the Social Health Authority, which was established to replace the National Health Insurance Fund (NHIF) with a promise of universal health coverage.

Healthcare stakeholders are now urging urgent intervention to resolve the impasse, warning that the cash-only policy could exacerbate health inequalities and push vulnerable families deeper into financial distress