The National Health Insurance Fund (NHIF) and the Social Health Authority (SHA) have been given seven days' notice by the Kenya Association of Private Hospitals (KAPH) to release funds that are owed to its member hospitals. 

Dr. Eric Musau, the chairperson of KAPH, said in a statement that private hospitals will stop providing services to NHIF beneficiaries if the NHIF does not honor the payments.

"We have issued a 7- day demand notice the NHIF/SHA to release all funds owed to members as per our contractual agreements which is 60 days after service offering. Our members shall stop services to NHIF beneficiaries should the fund not honour the payments as stipulated in hospital contracts," reads the statement.


Musau stated that although KAPH had contacted NHIF to address the unpaid bills, very little money had been transferred, preventing hospitals from doing their regular business.

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"Our member hospitals have been forced to take expensive credit, lay off workers and default on supplier payments to continue offering care to NHIF beneficiaries," he added.

"NHIF has been remitting very little portions of money owed which is not able to sustain operations. We have received reports of facilities closing some hospital operations or closing hospitals completely due to non-payment for services offered."

Health Cabinet Secretary Susan Nakumicha warned private hospitals on January 2, 2024, cautioning them against issuing fraudulent patient records. 


During her speech at Bungoma's Lugulu Mission Hospital, Nakhumcha threatened to take action against hospitals that overcharge patients who are NHIF scheme beneficiaries. 

July 2024 will see the transition of the NHIF to the new Social Health Insurance Fund (SHIF). Since then, the Health Ministry has declared that funds contributed to the NHIF will automatically be moved to the Social Health Authority (SHA).