RUPHA orders cash payments as Sh76billion debt piles on SHA
Kenyans covered by the Social Health Authority (SHA) visiting private hospitals will beginning today be required to pay their bills in cash after the Rural and Urban Private Hospitals Association of Kenya (RUPHA) issued a directive to all private facilities due an outstanding Sh76billion debt owed to them by the graft laden Social Health Authority (SHA).
RUPHA said the directive takes effect beginning September 22, 2025.
They said the unsettled debt has made it unsustainable for private hospitals to continue offering services on credit.
“Please be advised that, effective today, all healthcare services (unless otherwise stated) at this facility for Social Health Authority (SHA) beneficiaries will be provided on a cash basis,” RUPHA said in its statement.
RUPHA expressed regret over the inconvenience caused by the directive but emphasized that the move was necessary to keep private hospitals operational.
“We regret the inconvenience this may cause and assure you that this action is driven by our commitment to ensure that: Hospitals remain open, essential supplies and equipment are available, and our staff can continue to serve you with the highest standards of care,” it added.
Their action comes two weeks after they issued a notice to the Ministry of Health over debts owed to the Private hospitals by the defunct NHIF and now SHA.
Earlier this month while issuing the notice, RUPHA demanded the settlement of the NHIF debt and payment of 50 percent of outstanding SHA liabilities within 14 days.
“RUPHA hereby issues a 14-day go-slow notice effective today for the Social Health Authority (SHA) to address the following: Immediate settlement of NHIF liabilities in line with the
Presidential Directive of 5th March 2025 and payment of at least 50 per cent of the Sh43billion outstanding SHA liabilities within 14 days,” it stated.
RUPHA Chairperson Brian Lishenga warned that private hospitals risk closing down by December if the government fails to clear outstanding debts.
He also said private hospitals may be forced to switch to a 100 per cent cash payment model before patients can receive treatment.
“We are Shh76 billion in debt as a sector, Ksh33 NHIF debt, and Ksh43 billion SHA liability. The health sector cannot continue bearing this burden. What we are saying is that if the NHIF debt is not paid immediately, it is very likely that by December, either you will not have private hospitals or the entire system will revert to 100 per cent,” Lishenga previous stated.
