Teachers, police officers face health crisis over Sh29bn insurance contract dispute
The service disruption affects over 452,000 teachers and thousands of police officers, including those deployed to protect high-ranking government officials and critical national security installations.
Thousands of teachers and police officers nationwide are facing a health crisis after hospitals began suspending medical services due to unpaid claims linked to a Sh29 billion contract between the National Treasury and Minet Administrative Kenya Limited (MAKL).
The service disruption affects over 452,000 teachers and thousands of police officers, including those deployed to protect high-ranking government officials and critical national security installations.
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Both public and private hospitals, contracted to provide health coverage for teachers, police officers, and prison wardens, have reported a lack of payment for services rendered, some for over seven months.
Brian Lishenga, Chairman of the Rural and Urban Private Hospitals Association (RUPHA), confirmed that hospitals are turning away affected patients.
“What is happening is that individual private hospitals are presenting official letters declaring they have suspended services,” Lishenga told The Nation.
“The private insurers who sort out police and teachers have not kept their end of the deal on payments to the private hospitals.”
The disruptions affect both referral and routine services, including admissions and outpatient care.
According to Nation, hospitals that have suspended services include AGC Tenwek, Siloam, and Chelymo hospitals in the South Rift, as well as Kisii Teaching and Referral Hospital and Reale Hospital in Uasin Gishu, among others.
AGC Tenwek Hospital, which ceased services on Saturday, cited an outstanding payment owed by MAKL.
“This decision has been made because of an outstanding payment owed by MAKL for services already rendered,” the hospital’s management said.
“MAKL members will be required to pay in cash for all services. This measure is necessary to ensure the sustainability of our services.”
The hospital revealed that it is owed over Sh1 billion by MAKL and previous insurers, including the defunct NHIF and Social Health Authority (SHA).
Dr Robert Langat, AGC Tenwek Hospital’s board chairman, expressed frustration over the ongoing issue, stating that despite raising the matter with the Cabinet Secretary and Principal Secretary for Health, no solution has been found.
“We have never been faced with this kind of crisis before,” he added.
Kisii Teaching and Referral Hospital suspended services on January 27, while Reale Hospital has notified teachers of their decision to halt services.
The crisis has drawn sharp criticism from teachers’ unions.
Collins Oyuu, Secretary-General of the Kenya National Union of Teachers (KNUT), condemned the situation, saying it was particularly harmful to teachers suffering from terminal illnesses or those on maternity leave.
“It is sad teachers suffering from terminal illnesses and those on maternity leave cannot be treated because of failure by the employer to release capitation money to the insurance provider,” Oyuu said.
Omboko Milemba, Chairman of the Kenya Union of Post-Primary Education Teachers (KUPPET), echoed Oyuu’s sentiments, warning that the health crisis could disrupt education.
“The disruption of medical services for teachers affects households across the 47 counties. Sick teachers cannot pay from their pockets and offer quality services to learners,” Milemba said.
TSC boss Nancy Macharia has attributed the issue to the Treasury’s failure to release the necessary funds, affecting access to critical services such as outpatient care, inpatient care, maternity services, dental and optical care, psychiatric services, and more.
As the situation worsens, unions have called for swift intervention from the Treasury, with many urging Cabinet Secretary John Mbadi to address the mounting crisis.
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