Mounting debt could halt vital services at KNH, MTRH and KUTRRH - Nancy Gathungu
The report warns that the financial strain could affect hospital operations if suppliers decide to withhold deliveries of essential items.
Kenya’s top public hospitals are facing mounting debts to suppliers, raising concerns over the continuity of essential services.
Auditor-General Nancy Gathungu’s report shows that three level six hospitals, Moi Teaching and Referral Hospital (MTRH), Kenyatta National Hospital (KNH), and Kenyatta University Teaching, Referral and Research Hospital (KUTRRH) owe more than half of the total Sh14.1 billion debts reported by health facilities by June 2024.
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The audit covering 250 hospitals, including level four, five, and six facilities, found that MTRH had the largest liability at Sh3.09 billion, followed by KNH with Sh2.39 billion and KUTRRH at Sh1.9 billion.
These three institutions alone accounted for Sh7.4 billion of the total arrears.
“The amount of Sh14,103,500,087 comprised Sh7,401,468,215 relating to Level 6 hospitals, Sh3,223,219,534 relating to Level 5 hospitals and Sh3,478,812,339 relating to Level 4 Hospitals,” Auditor-General Nancy Gathungu said.
The report warns that the financial strain could affect hospital operations if suppliers decide to withhold deliveries of essential items.
“Failure to settle payables may result in suppliers withholding the supply of goods and pharmaceutical items and hence adversely affecting service delivery,” Gathungu said.
These hospitals play a vital role in the healthcare system, serving thousands of patients referred from smaller facilities.
KNH, for instance, treats over 1.7 million patients annually, highlighting the national implications of any service disruption.
Among level five hospitals, Nakuru County Referral Hospital had the highest debt at Sh699.5 million, while Naivasha County Referral Hospital led level four institutions with Sh511.6 million in arrears.
Overall, the audit assessed three level six, 14 level five, and 187 level four hospitals.
Revenue collection was also flagged as a major concern. The report revealed that 223 hospitals failed to recover Sh11.35 billion in funds owed during the year.
Level six hospitals missed Sh5.87 billion, level five Sh2.65 billion, and level four Sh2.83 billion. MTRH and KUTRRH again featured prominently, with Sh4.2 billion and Sh1.65 billion uncollected, respectively.
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