The Kenya Association of Private Hospitals (KAPH) has suspended all credit arrangements under Social Health Authority (SHA) and Medical Administrator Kenya Limited (MAKL) due to unpaid arrears.
This decision was made during a Special General Meeting (SGM) held on 24th February 2025. KAPH, which represents over 300 private healthcare facilities across the country, said the move was necessary because of the financial crisis affecting private hospitals in the county.
Reasons for the Suspension
- Private hospitals are facing serious financial challenges because of:
- Unpaid NHIF arrears of Ksh30 billion
- Delays in payments for services provided under MAKL
- Confusion in the transition from NHIF to SHA
- Lack of clear guidelines for outpatient reimbursements
“Despite several meetings with the government and MAKL, private hospitals have not received their payments. This situation is making it hard for them to operate, and many are struggling to pay workers, buy medicine, and keep their doors open,” read part of KAPH statement.
According to KAPH, the delays in payments has lead to the financial problems in private hospitals have already caused: Job losses for healthcare workers, delayed salaries for doctors and nurses, shortage of important medical supplies and loan defaults by hospitals.
This crisis affects not just private hospitals but the entire health system in Kenya.
Private hospitals serve over 52% of the population, meaning millions of Kenyans could lose access to essential healthcare services.
The situation also threatens Kenya’s goal of achieving Universal Health Coverage (UHC) and weakens key areas of the healthcare system, such as service delivery, medical supplies, and financing.
“We are open to discussions, but we cannot continue offering services without payment. The future of private hospitals and millions of Kenyan patients depends on a quick resolution,” said Dr. Erick Musyima, Chairman of KAPH.
