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State threatens to shut down private hospitals in bills dispute
The Principal Secretary State Department for Medical Services Harry Kimtai during a high-level meeting on mitigation measures to address the impact of funding cuts on Kenya’s HIV response at Serena Hotel in Nairobi on March 12, 2025.
Private hospitals that refuse to provide health services to Kenyans will be shut down, Medical Services Principal Secretary (PS) Harry Kimtai has warned.
In an escalation of a row pitting the facilities and the Health Ministry over payment of claims by the Social Health Authority (SHA), the government has cautioned that private hospitals will suffer severe consequences for refusing to provide outpatient services to the public.
“Private health facilities that continue to turn away patients could find themselves shut down and their g licences revoked,” Mr Kimtai said.
Hospitals have complained about unpaid bills inherited from the defunct National Hospital Insurance Fund (NHIF) now replaced by the Social Health Insurance Fund (Shif), one of the kitties run by SHA.
Speaking in Embu during the handover of new digitisation devices for the Taifa Care health programme, the PS accused some private hospitals of engaging in a manipulative scheme, deliberately denying patients outpatient services to pressure the government into paying off outstanding medical claims.
“We will not succumb to pressure. Private hospitals that have claims exceeding Sh10 million must provide verifiable supporting records for scrutiny. If they fail to comply, we will have no choice but to take serious action, including suspending their operations,” said Mr Kimtai.
The PS added that the Health Ministry is fed up with private hospitals playing games with public health funds, and vowed to ensure the system remains fair and transparent.
“Why are these hospitals only now demanding payment for claims dating back to 2016? Why didn’t they pursue these claims earlier?” he asked.
The President’s Economic Adviser for Special Programmes Moses Kuria stressed that Kenyans under SHA are entitled to free primary medical services at government facilities.
He said in Embu County alone, the government has already allocated Sh32 million for outpatient services, benefiting more than 24,000 people.
Of this amount, Sh24 million is earmarked for public facilities while Sh8 million will go to private hospitals participating in the programme. This financial boost to private providers comes with strings attached, including providing services to outpatients.
Mr Kuria was also quick to point out that the amount each county receives depends on the number of registered SHA beneficiaries, highlighting that the government is doing its part to ensure equitable distribution of resources.
