NAIROBI, Kenya, March 18 – The Ministry of Health has warned private hospitals against boycotting the Social Health Authority (SHA) over unpaid National Health Insurance Fund (NHIF) claims, threatening closures and license revocations for non-compliant facilities.
Health Principal Secretary Harry Kimtai, speaking on Monday during the launch of digitization devices in Embu County, expressed concern over the reluctance of private hospitals to offer outpatient services under the new SHA model.
He warned that hospitals refusing to comply could face serious consequences, including denial of registration and shutdowns.
“From the statistics and data we have seen, we have realized that most private facilities are not participating in outpatient services, which is primary healthcare funding. If they (private hospitals) continue like this—if they are not compliant and don’t want to provide services to Kenyans—then they will have to close shop because they are also subject to license renewal,” Kimtai said.
Kimtai suggested that the resistance from private hospitals might stem from a lack of understanding of the new healthcare model or a preference among patients for public facilities under Taifa Care.
He added that the ministry has mandated private hospitals to submit verifiable records for claims exceeding Sh10 million.
The standoff between the government and private hospitals over SHA implementation has been ongoing, with Rural and Urban Private Hospitals Association (RUPHA) suspending services under SHA in February due to unpaid NHIF debts dating back to 2017.
The association later lifted the suspension after President William Ruto intervened.
RUPHA Chairperson Brian Lishenga previously stated that the financial shortfall had led to severe challenges, including bank defaults and stockouts of essential medicines.
Under the SHA framework, outpatient services are capped at Sh2,000 per visit, with beneficiaries limited to four visits per year in Level II, III, and IV primary healthcare facilities.
Many private hospitals argue that this model is financially unsustainable.
