Private Hospitals Suspend Boycott Of SHA Services

This gives Kenyans using SHA services to seek treatment in private hospitals a sigh of relief.

Private Hospitals Suspend Boycott Of SHA Services
A photo of the Social Health Authority (SHA) headquarters in Nairobi. /NTV

The Rural Private Hospitals Association of Kenya (RUPHA) has lifted its boycott of Social Health Authority (SHA) services after President William Ruto's recent order to clear the National Health Insurance Fund (NHIF) debt.

In a message to its members on Thursday, March 6, RUPHA announced that SHA services have resumed as they monitor the implementation of the directive. This gives Kenyans using SHA services to seek treatment in private hospitals a sigh of relief.

RUPHA mentioned that although Ruto's directive does not completely address their issues, it represents an important step in alleviating the financial challenges faced by healthcare facilities.

Dr. Brian Lishenga Chairman, Rural & Urban Private Hospitals Association of Kenya (RUPHA). /PEOPLE DAILY

"The Executive Committee of the Rural & Urban Private Hospitals Association of Kenya (RUPHA) acknowledges the progress made following our collective action, which has resulted in H.E. President William Samoei Ruto's directive to begin settling NHIF arrears and establish a verification process for larger claims," the press statement issued by the chairperson of RUPHA Brian Lishenga read in part.

"We recognize that this directive does not fully resolve all concerns but represents a critical first step in addressing the financial distress facing healthcare facilities. After extensive deliberations, we have reached a decision to call off the boycott of SHA services, effective immediately, while closely monitoring the government’s actions to ensure full implementation of its commitments."

However, RUPHA cautioned that the suspension of services under Medical Administrator Kenya Limited (MAKL) would continue due to MAKL’s failure to address the concerns raised by healthcare providers.

The association justified its decision not to lift the suspension, explaining that MAKL has not reconciled the existing debt owed to providers, making it impossible for hospitals to track what is due or outstanding.

This move follows President Ruto’s directive for the immediate payment of all NHIF claims under KSh10 million, which is expected to benefit 88 percent of affected healthcare providers, totaling 2,986 facilities.

Furthermore, the association warned that if payments are not made promptly, it will reconsider its stance and initiate another boycott.

"If payments for facilities owed under KSh10 million are not made promptly, RUPHA will immediately reassess our position and reconvene members to deliberate on the next steps, including the possibility of reinstating service suspension," warned the association.

"If facilities owed over KSh10 million do not receive at least KSh10 million in upfront payments, we will escalate our engagement with Parliament to ensure that budgetary allocations are structured fairly."

RUPHA stated that the directive offers crucial relief, helping the majority of its members, especially Level 2, 3, and 4 hospitals, to recover financially and sustain their operations.

On Wednesday, March 5, Ruto revealed a plan to settle the outstanding NHIF debt, confirming that the government would immediately pay hospitals with claims of Ksh10 million or less.

He also mentioned that hospitals with claims over Ksh10 million would undergo a verification process, which will be completed within 90 days before a structured payment plan is put in place.

Ruto also announced that a verification committee would be formed and officially gazetted within a week.

"The government has resolved to pay all hospitals with total claims of Ksh10 million and below in full, representing 91 per cent of all facilities that were contracted by NHIF. 

"The remaining 9 per cent of hospitals, with total claims of above Ksh10 million, will be subjected to a verification exercise that should be completed within 90 days, after which a payment plan will be agreed on," the Head of State announced.

President William Ruto speaking at State House, Mombasa on February 24, 2025. /PCS