Faith-based hospitals in Kenya have issued a stern warning to the government, giving it a 14-day ultimatum to settle an outstanding Sh10 billion debt or risk forcing patients to pay for medical services in cash. The institutions argue that the prolonged delay in payments has left them financially vulnerable, making it increasingly difficult to sustain operations. This debt includes Sh6.8 billion owed by the National Health Insurance Fund (NHIF), Sh2.2 billion in unpaid Social Health Authority (SHA) claims, and an additional Sh1 billion under the Medical Assistance and Loans for Livelihoods (MALL) programme, which has remained unsettled since July 2023.
These hospitals play a crucial role in Kenya’s healthcare system, particularly in rural and underserved areas, where they provide essential services to low-income patients. With the financial strain mounting, faith-based healthcare providers warn that unless the government acts immediately, thousands of patients who rely on subsidized medical care will be forced to shoulder the full burden of their treatment costs. This, they argue, could trigger a healthcare crisis, particularly among vulnerable populations who cannot afford private healthcare.
In a joint statement, the faith-based institutions emphasized that they have reached a breaking point and can no longer continue operating under severe financial constraints. They claim that they have exhausted all avenues of engagement with the Ministry of Health, SHA, and other government agencies, yet their concerns remain unaddressed. According to the healthcare providers, many of their hospitals are owed claims exceeding Sh10 million, a situation that has left them unable to pay staff, procure medical supplies, or sustain critical services.
President William Ruto recently addressed the issue, stating that hospitals owed less than Sh10 million—representing about 91 percent of affected institutions—would receive payments immediately. However, hospitals with claims exceeding this amount, making up the remaining nine percent, would have to wait at least 90 days for a verification process before payments are made. This decision has been met with resistance from faith-based hospitals, who argue that further delays will only worsen the crisis. They contend that the hospitals left out of immediate payment are those that handle complex medical conditions, specialized surgeries, and critical care services, which require substantial financial resources.
The hospitals have also raised concerns over the efficiency of the SHA, which was introduced in October 2024 to streamline healthcare financing in Kenya. They claim that only half of their submitted claims have been processed, which they view as a violation of the Social Health Insurance Act, 2023, which mandates that claims be settled within 90 days. The hospitals have now set a firm deadline of March 21 for the government to clear all outstanding payments, failing which they will have no choice but to demand cash payments from patients.
Dr. Robert Lang’at, chairman of the AGC Tenwek Hospital Board, described the situation as unprecedented, warning that Kenya’s healthcare system is at risk of collapse if the matter is not resolved urgently. He emphasized that faith-based hospitals account for nearly half of the country’s healthcare services, making their financial stability crucial to overall healthcare delivery. Expressing frustration over the government’s slow response, Dr. Lang’at questioned why the authorities had not expedited the verification process despite the legitimacy of the claims.
Faith-based leaders have also highlighted concerns over the bureaucracy involved in processing claims. They argue that hospitals must go through nearly 10 steps to access payments, a process they say is unnecessarily cumbersome and riddled with inefficiencies. Bishop Wambua, another faith-based hospital representative, criticized the inefficiency of SHA regional offices, which he claims are poorly equipped and lack decision-making authority. According to him, these offices frequently redirect inquiries to a system developer who appears to be outside the SHA and inaccessible, causing further delays.
To address these challenges, the hospitals are calling on the government to introduce a transparent invoice-tracking system that would allow healthcare providers to monitor their claims in real time. Such a system, they argue, would enhance accountability, reduce delays, and prevent a recurrence of the current crisis. Without urgent intervention, faith-based hospitals warn that Kenya’s healthcare system will face dire consequences, particularly for patients who rely on affordable medical care.
