Faith-based hospitals give government 14 days to settle Sh10 billion debt
The debt includes Sh6.8 billion in arrears owed by the National Health Insurance Fund (NHIF), Sh2.2 billion in unpaid Social Health Authority (SHA) claims, and Sh1 billion under the Medical Assistance and Loans for Livelihoods (MALL) programme, which has remained unsettled since July 2023.
Faith-based hospitals in Kenya have given the government a 14-day ultimatum to settle an outstanding Sh10 billion debt or risk having patients pay cash for medical services. The healthcare institutions say the failure to clear these dues has left them financially strained, pushing them to a breaking point.
The debt includes Sh6.8 billion in arrears owed by the National Health Insurance Fund (NHIF), Sh2.2 billion in unpaid Social Health Authority (SHA) claims, and Sh1 billion under the Medical Assistance and Loans for Livelihoods (MALL) programme, which has remained unsettled since July 2023.
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Faith-based hospitals provide essential healthcare services to a significant portion of the population, particularly in underserved areas. Healthcare providers caution that if the government fails to take immediate action, thousands of patients—many of whom depend on subsidised services—will be compelled to cover their own costs, thereby intensifying the country's healthcare crisis.
“We [faith-based leaders] have reached a painful decision since we cannot afford to take in more debt after numerous engagements with the Ministry of Health, the SHA, and some government leaders,” the hospitals said in a joint statement.
The providers said they have reached a saturation point and can no longer sustain operations under current financial constraints.
“Most of our hospitals are owed claims exceeding Sh10 million. This means we are the lot that will have to wait for three months for the verification committee to be constituted. We are financially constrained while waiting,” the statement added.
On Wednesday evening, President William Ruto said the government would prioritise the payment of pending claims. He announced that hospitals owed less than Sh10 million—comprising 91 percent of the affected institutions—would receive payments immediately. However, the remaining nine percent, with claims exceeding Sh10 million, would have to wait at least 90 days for verification.
Faith-based hospitals argue that this delay is untenable. “This is grossly inadequate. The hospitals left unpaid handle the more complicated diseases, specialised surgeries, and critical patients. These services are costly,” the statement noted.
The hospitals also pointed out that since the SHA rollout in October 2024, only half of their claims have been settled. They have now set a deadline of March 21 for the government to clear all outstanding SHA payments, citing a violation of the Social Health Insurance Act, 2023, which mandates claim settlements within 90 days.
Dr. Robert Lang’at, chairman of the AGC Tenwek Hospital Board, described the situation as unprecedented.
“Faith-based hospitals offer nearly half of Kenya’s healthcare services, and this is the first time we are experiencing a crisis of such magnitude. Services are on the verge of shutting down,” he said.
Dr. Lang’at questioned why the government was taking so long to resolve the crisis. “The Church is not at war with the government. Does anyone in government doubt the legitimacy of our claims? If so, why is it taking months to resolve? Why is our system so bureaucratic?” he asked.
The leaders also demanded that the government streamline the claims processing system. “There are about 10 steps we must go through to access our claims, which delays services,” Bishop Wambua said.
The hospitals also raised concerns about the inefficiency of SHA regional offices. “They seem not to have been trained or empowered to make decisions. They always refer questions and support requests to the system developer, who appears to be outside SHA, unreachable, and holding all authority.”
As a solution, they are calling for the introduction of a transparent invoice-tracking dashboard that would allow healthcare facilities to monitor their claims in real time.
Additionally, the consortium urged the National Assembly and Senate to allocate sufficient funds for the Primary Health Care and Emergency, Critical and Chronic Illness Funds.
They noted that “primary healthcare has virtually collapsed in Levels Two, Three, and some Level Four hospitals due to lack of capitation. The payment for the quarter from January to March 2025 remains unpaid, despite the expectation of upfront payment.
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