Private Hospitals Suspend Credit Services to Social Health Authority Over Kshs 43 Billion Debt

Chairman of Rural & Urban Private Hospitals Association(RUPHA), Dr. Brian Lishenga, addressing the press at the association’s offices at Lunga Lunga Square in Nairobi.

By Winnie Atieno 

Nairobi, September 22, 2025 – The Rural & Urban Private Hospitals Association of Kenya (RUPHA) has suspended the provision of healthcare services on credit to the Social Health Authority (SHA), citing unpaid claims and breach of contract.

Speaking in Nairobi on Monday, RUPHA chairman Dr. Brian Lishenga said the decision follows the expiry of a two-week notice issued on September 5 after none of the concerns raised were addressed.

“This painful but necessary decision has been taken because hospitals cannot continue carrying the financial burden caused by SHA’s failure to settle claims and abide by contractual obligations,” he said.

The association pointed to the rejection of medical claims worth Kshs 10.6 billion without due process, discrimination in claims settlement, and failure to clear historical debts dating back to 2017 despite a presidential directive. “There are no ‘NHIF debts’ and ‘SHA debts’ all liabilities are legally owed by SHA,” RUPHA emphasized.

Arbitrary downgrades have also erased thousands of maternity, delivery, and inpatient beds, crippling service delivery in both rural and urban areas. As of August 2025, SHA owes hospitals Kshs 43 billion, with another Kshs 24 billion under review.

“The financial situation is now unsustainable. Despite raising up to Kshs 6 billion monthly, SHA is unable to match hospitals’ claims of Kshs 8.8 billion,” Lishenga warned.

RUPHA said its members will not extend services on credit until the issues are resolved.