Teachers, police officers, and patients relying on the Social Health Authority (SHA) scheme will be denied medical services at select private hospitals starting Monday, February 24.
The Rural and Urban Private Hospitals Association of Kenya (RUPHA) announced on Thursday, February 20, that its member hospitals will suspend services for civil servants until outstanding government-backed insurance debts are settled.
According to RUPHA Deputy Chairperson Rev. Joseph Kariuki, the decision follows a prolonged delay in payments for services rendered over the past year.
“We will stop providing medical services to police officers, teachers, and SHA patients from Monday unless the government clears its debts,” Kariuki stated.
Government Owes Ksh29 Billion to Private Hospitals
RUPHA revealed that the government has accumulated a debt of approximately Ksh29 billion to private hospitals, dating back to the defunct National Health Insurance Fund (NHIF) in 2017. Despite multiple assurances from the Treasury, hospitals claim they have been left struggling with financial constraints.
“Why is it that the Treasury does not value the lives of Kenyans?” Kariuki questioned, highlighting how some hospitals have been auctioned, staff laid off, and specialists withdrawing services due to non-payment.
Global Budget Capitation Under Scrutiny
In addition to demanding debt clearance, RUPHA is calling for a review of the Global Budget Capitation model used for outpatient services. The association argues that the current capitation rate of Ksh900 per person per year—equivalent to about Ksh75 per month—is inadequate to sustain quality healthcare.
The SHA, which replaced NHIF in October 2024, has faced significant operational challenges, with the government acknowledging the issues and promising a structural review.
With the standoff between private hospitals and the government escalating, thousands of civil servants and SHA beneficiaries could be forced to seek treatment in public hospitals or pay for services out-of-pocket until the matter is resolved.