Hospitals Warn of Possible Nationwide Shutdown Over Unpaid Government Bills

The Rural and Urban Private Hospitals Association of Kenya (RUPHA) has raised the alarm over a looming crisis in the country’s healthcare sector, warning that many private hospitals could soon close their doors due to long-standing delays in government compensation.

Speaking during a press briefing in Meru, RUPHA Chairman Dr. Brian Lishenga said that the government has failed to pay billions of shillings owed to private hospitals under the now-defunct National Health Insurance Fund (NHIF) and its successor, the Social Health Authority (SHA).

He explained that the unpaid bills have left many hospitals financially crippled, with some already shifting to cash-only services to stay afloat.

According to Dr. Lishenga, the government currently owes private hospitals Ksh33 billion in NHIF arrears and an additional Ksh43 billion under SHA claims, bringing the total pending amount to a staggering Ksh76 billion.

He noted that private and faith-based hospitals, which account for nearly 50 percent of healthcare services in Kenya, continue to face unfair treatment despite playing a critical role in serving millions of Kenyans.

“This kind of discrimination in payments puts the entire health sector in danger,” Lishenga said. “Hospitals across the country are on the brink. Some are preparing to shut down while others have already switched to cash-only payments because reimbursements are no longer reliable.”

The association, which represents about 700 private and faith-based facilities, also criticized the government for failing to act on President William Ruto’s directive to clear all pending NHIF bills. Despite the order, hospitals continue to wait endlessly for their money.

RUPHA further revealed that under the Social Health Authority system, delays have worsened instead of improving.

Hospitals have submitted claims worth Ksh93 billion since SHA began operations in October last year, but so far only Ksh50 billion—about 53 percent—has been reimbursed. This shortfall has left healthcare providers struggling to pay staff, purchase medical supplies, and maintain essential services.

The situation is even more concerning in pilot counties such as Mombasa, Kirinyaga, Embu, and Nandi, where the government introduced the digital superhighway program to streamline healthcare payments.

Instead of making the system more efficient, RUPHA says the program has created new hurdles, with Primary Healthcare claims in these counties going unpaid for months.

The association warned that unless the government urgently clears the arrears and ensures consistent monthly reimbursements, the entire healthcare system could face a collapse.

Dr. Lishenga emphasized that the failure to pay hospitals threatens the wellbeing of ordinary Kenyans who depend on private facilities for quality healthcare.

“Without immediate action, patients risk being locked out of essential medical services, and that would be a national disaster,” he said.

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