300 Hospitals Explain Suspending SHA Services
The association explained that the decision came in response to persistent financial instability that has placed the quality, accessibility, and sustainability of healthcare services at grave risk.
Marvin Chege 
More than 300 private hospitals have suspended services under the Social Health Authority (SHA) indefinitely on a day the Rural and Urban Private Hospitals Association (RUPHA) moved to do the same on Monday, February 24, plunging President William Ruto's pet healthcare insurance project into an abyss.
The Kenya Association of Private Hospitals (KAPH) in a statement announced that its members agreed to suspend all credit arrangements under the Social Health Authority (SHA) insurance scheme and Medical Administrator Kenya Limited (MAKL) indefinitely.
KAPH represents over 300 private healthcare facilities of varying sizes, spanning urban, peri-urban, and rural areas across Kenya. Its core objectives include stakeholder engagement and advocacy, enhancing healthcare service quality, institutional and professional development of its members and research and innovation in healthcare.
A panel discussion at the KAPH 2024 Convention between November 21-22, 2024. /KENYA ASSOCIATION OF PRIVATE HOSPITALS
"During a Special General Meeting (SGM) held on 24th February 2025, KAPH members unanimously resolved to indefinitely suspend all credit arrangements under the Social Health Authority (SHA) insurance scheme and Medical Administrator Kenya Limited (MAKL), effective immediately," announced KAPH in part.
The association explained that the decision came in response to persistent financial instability that has placed the quality, accessibility, and sustainability of healthcare services at grave risk.
KAPH cited issues such as unresolved inefficiencies in the old National Health Insurance Fund (NHIF)-SHA transition, an unclear operational and reimbursement framework for outpatient services, outstanding NHIF arrears amounting to Ksh30 billion and long-standing unpaid claims under MAKL.
"This is not a decision we have taken lightly. It follows months of unsuccessful negotiations with government authorities and MAKL, repeated unfulfilled promises, and an increasing financial burden that is now threatening the very survival of private healthcare facilities across Kenya," KAPH added.
"Private hospitals provide critical healthcare services to over 52% of the population, and without urgent intervention, their ability to deliver essential care is now in jeopardy."
On far-reaching consequences of the crisis, the association lamented that the ongoing financial strain on hospitals has already triggered mass job losses in the healthcare sector as well as delays in salary payments for medical professionals and staff
The situation has also resulted in severe shortages of essential medical supplies and loan defaults and financial distress among private facilities.
According to KAPH, the crisis does not just impact hospitals, but also undermines the national healthcare system, threatening Kenya's commitment to achieving Sustainable Development Goal (SDG) 3.8 (Universal Health Coverage - UHC).
"Furthermore, it weakens the World Health Organization's (WHO) six core healthcare pillars, particularly service delivery, health workforce, health information systems, access to essential medicines and supplies and healthcare financing," added the statement.
KAPH, despite the decision, assured that it is ready and willing to enter into meaningful discussions with the relevant authorities to urgently address these systemic failures to prevent the further deterioration of healthcare services in Kenya, stating "The sustainability of private hospitals and the health and well-being of millions of Kenyans depends on immediate action."
RUPHA is urging the government to settle all outstanding bills accrued under the old National Health Insurance Fund (NHIF) since 2017. By December of last year, the government owed private hospitals around Ksh29 billion.
RUPHA insisted that despite assurances from the government, it will not continue providing services without a clear payment plan.
