Kenya: Private Hospitals Seek Urgent Dialogue With MOH After Closure Threat

Nairobi — The Kenya Association of Private Hospitals (KAPH) has urged the Ministry of Health and the Social Health Authority (SHA) to initiate urgent dialogue over delayed payments owed to private healthcare providers, terming recent threats of closure by the ministry as unwarranted and counterproductive.
The association made the call after Principal Secretary for Health, Harry Kimtai warned that private health facilities refusing to participate in the SHA scheme could face license revocation and closure.
KAPH Chairperson Eric Musau said Monday the sector remains committed to supporting the government’s Universal Health Coverage (UHC) agenda but stressed that the private healthcare system is under immense financial strain due to unsettled claims, many dating back months.
“We wish to state, unequivocally, that private healthcare providers remain committed to supporting the government’s Universal Health Coverage agenda,” Musau said.
“However, it is important to address the real and pressing financial challenges that threaten the sustainability of private hospitals–challenges largely caused by delayed payments of claims owed under the National Health Insurance Fund.”
KAPH disclosed that several hospitals are owed in excess of Sh10 million each, with some facilities struggling to meet basic operational costs such as staff salaries, procurement of medical supplies, and the delivery of essential health services.
“Failure to honor these obligations puts the entire healthcare system at risk,” Musau warned.
The association termed the Ministry’s threats as unfortunate, unwarranted, and risking the crippling of a sector that contributes significantly to healthcare delivery in the country.
The standoff arises amid Kenya’s transition from the National Health Insurance Fund (NHIF) to the SHA, a move the goevernment says will streamline healthcare financing and expand access to affordable health services under the government’s flagship UHC programme.
Govt demands untenable
However, private sector players say the transition has been marred by uncertainty and a backlog of pending claims under the outgoing NHIF framework.
“Private hospitals cannot sustainably offer services under any government health scheme without the timely settlement of claims. Demanding continued service without payment is untenable,” KAPH stated.
KAPH is now calling for immediate engagement with top officials from the Ministry of Health and SHA to resolve outstanding payments and formulate a structured implementation plan for the new scheme.
The association also wants full compliance with presidential directives issued on March 6, 2025, committing to sustainable healthcare financing.
“Achieving UHC is a shared goal, but it must be built on mutual respect, fairness, and honoring of commitments,” Musau added.
The private health sector forms a critical part of Kenya’s healthcare system, catering to a significant percentage of Kenyans and providing vital services, particularly in underserved regions.
KAPH reiterated its willingness to engage in constructive dialogue but cautioned that continued delays could have far-reaching consequences on service delivery in both the private and public sectors.
By Capital FM.