Public hospitals have been allocated nearly half of the Sh11 billion disbursed by the Social Health Authority (SHA) for healthcare services. These funds aim to cover outstanding bills under the National Hospital Insurance Fund (NHIF) and help ease the financial burdens of health providers across the country.
Public healthcare facilities, including Kenyatta National Hospital (KNH), Moi Teaching and Referral Hospital (MTRH), and Kenyatta University Teaching Referral and Research Hospital (KUTRRG), are among the major beneficiaries. The payment to KNH alone amounted to Sh379.8 million, while MTRH received Sh345.1 million, and KUTRRG secured Sh358 million, in a bid to settle long-standing debts.
The SHA payments are part of ongoing efforts by the government to streamline the health sector and address the backlog of unpaid claims to hospitals. However, the disbursement process has not been without challenges. Several private and faith-based healthcare providers have previously suspended their services under SHA due to delayed payments, with many calling for more timely and consistent reimbursements.
The government has made strides to address these concerns, allocating Sh9 billion in October 2024 to cover debts owed to various healthcare providers. A further Sh1 billion was earmarked for the Linda Mama program to ensure continued access to free maternal health services.
Despite these efforts, ongoing disputes over reimbursement rates and the financial sustainability of the Social Health Insurance Fund (SHIF) continue to affect the sector. Some private hospitals have warned that the current financial model is unsustainable, which could lead to more facilities pulling out of the SHA system unless payments are made promptly.
Faith-based hospitals, which have been vocal about their grievances, have given the government a 14-day ultimatum to settle Sh10 billion in outstanding dues. Should the government fail to meet this deadline, these hospitals have threatened to revert to cash payments for services, further straining the healthcare system.
The government faces mounting pressure to resolve the financial challenges and ensure that all healthcare providers, both public and private, are adequately funded.