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Private hospitals suspend SHA and MAKL services amid unpaid arrears

Teresiah Ngio by Teresiah Ngio
February 25, 2025
in News
Reading Time: 2 mins read

Private hospitals across Kenya have indefinitely suspended services under the Social Health Authority (SHA) and Medical Administration Kenya Limited (MAKL) due to mounting unpaid arrears and ongoing financial instability.

In a statement released on Monday, February 24, the Kenya Association of Private Hospitals (KAPH) announced the suspension, citing inefficiencies in the transition from the National Hospital Insurance Fund (NHIF) to SHA and the absence of a clear reimbursement framework for outpatient services.

“This decision comes in response to persistent financial instability 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 Ksh 30 billion, and long-standing unpaid claims under MAKL,” said KAPH chairman Erick Musyima.

Musyima highlighted that the association had engaged in months of negotiations with government authorities, which ultimately failed to yield solutions. “This is not a decision we have taken lightly. It follows months of unsuccessful negotiations with government authorities, repeated unfulfilled promises from MAKL, and an increasing financial burden that now threatens the very survival of private healthcare facilities across Kenya,” he explained.

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The suspension is expected to significantly impact healthcare access, as private hospitals cater to more than 52% of Kenya’s population. KAPH warned that the ongoing crisis could undermine Kenya’s progress toward achieving Universal Health Coverage (UHC) and compromise key pillars of the World Health Organization’s (WHO) healthcare framework.

Despite the indefinite suspension, KAPH expressed a willingness to engage in further dialogue with the government to address systemic issues and find sustainable solutions. “The sustainability of private hospitals and the health and well-being of millions of Kenyans depend on immediate action,” the statement concluded.

As of now, no official response has been issued by the government regarding the suspension, leaving many patients uncertain about their healthcare options under SHA and MAKL.

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