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Looming Healthcare Crisis as Private Hospitals Suspend Services Under SHA

Date:

NAIROBI, Kenya – Normal healthcare services in the country are likely to grind to a halt after the Kenya Association of Private Hospitals (KAPH) announced indefinite suspension of services.

The services to be affected are those under the Social Health Authority (SHA) insurance scheme and Medical Administrator Kenya Limited (MAKL).

“During a Special General Meeting (SGM) held on February 24, 2025, KAPH members unanimously resolved to indefinitely suspend all credit arrangements under SHA insurance scheme and MAKL, effective immediately,” reads a statement signed by KAPH chairman Dr. Erick Musyima.

Dr. Musyima emphasised that this decision comes in response to persistent financial that has placed the quality, accessibility and sustainability of healthcare services at grave risk due to: unresolved inefficiencies in the NHIF-SHA transition, an unclear operational and reimbursement framework for outpatient services, outstanding NHIF arrears amounting to Sh30 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,” explained Dr. Musyima.

Why private hospitals are critical to the population

The medic observed that private hospitals provide critical healthcare services to over 52pc of the population, and without urgent intervention, their ability to deliver essential care is now in jeopardy. 

“The far-reaching consequences of this crisis by the virtue of the ongoing financial strain on hospitals has already triggered mass job losses in the healthcare sector, delays in salary payments for medical professionals and staff, severe shortages of essential medical supplies. Others include loan defaults and financial distress among private facilities,” lamented Dr. Musyima. 

KAPH represents over 300 private healthcare facilities or varying sizes, spanning urban, peri-urban and rural areas across Kenya. 

It’s core objectives include: stakeholders engagement and advocacy, enhancing healthcare service quality, institutional and professional development of its members and research and innovation in healthcare. 

How KAPH plans to unlock the ongoing stalemate

And according to Dr. Musyima, the crisis does not just impact hospitals, it undermines the national healthcare system and threatens Kenya’s commitment to achieving Sustainable Development Goal (SDG) 3.8 (Universal Health Coverage -UHC). 

“Furthermore, it weakens the World Health Organisation’s (WHO) six core healthcare pillars, particularly: service delivery, health workforce, health information services, access to essential medicines and supplies and healthcare financing,” Dr. Musyima explained further. 

Meanwhile, Dr. Musyima maintained that KAPH is ready and willing to enter into meaningful discussions with the relevant authorities to urgently address these systematic failures to prevent the further deterioration of healthcare services in Kenya. 

“The sustainability of private hospitals and the health and well-being of millions of Kenyans depends on immediate action,” explained Dr. Musyima through the statement. 

Dennis Lubanga
Dennis Lubanga
Dennis Lubanga, an expert in politics, climate change, and food security, now enhances Y News with his seasoned storytelling skills.

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