Private hospitals warn of possible closure by December
By William Muthama, September 8, 2025The Rural and Urban Private Hospitals Association of Kenya (RUPHA) has warned that private and faith-based hospitals across the country could close by December if outstanding debts are not cleared.
Speaking during an interview on Monday, September 8, 2025, RUPHA chairperson Brian Lishenga said the sector is under immense financial pressure due to unpaid NHIF obligations.
Lishenga explained that the health sector is struggling to sustain operations because of mounting arrears, including Ksh33 billion owed by NHIF and Ksh43 billion in shared liabilities.
“If this money is not paid immediately, by December, either private hospitals will shut down, or the entire system will revert to 100 per cent cash payments,” he warned.
He added, “We are not asking for handouts. We are concerned that if these debts are not settled, hospitals cannot operate, and the healthcare system will collapse.”
Also, RUPHA had earlier issued guidelines regarding suspending SHA services in private hospitals due to pending arrears.
The chairperson also highlighted the wider consequences for patients, noting, “This will create a vicious cycle where Kenyans are forced to pay out of pocket, and contributions to NHIF will start declining because people will lose trust in the system.”
He further cautioned, “Most lower-level and rural populations depend heavily on private and faith-based hospitals. If the arrears are not cleared, millions of Kenyans could lose access to essential medical services.”
Lishenga stressed that the warning is not a demand for more funds but a plea for accountability and timely payments. “We are giving this notice because we are worried that the healthcare system cannot function under these financial pressures,” he said.
It is worth noting that Lishenga had also accused Health Cabinet Secretary Aden Duale of undermining Social Health Authority leadership by micromanaging the institution and sidelining its executives.
The association’s warning comes months after Health Cabinet Secretary Aden Duale reassured the hospitals that the government remains committed to clearing the majority of pending payments owed by the defunct National Health Insurance Fund (NHIF).
In July, Duale said the outstanding NHIF payments, ranging between Ksh1 million and Ksh10 million and accounting for 92 per cent of the debts, would be settled. “For the remaining 8 per cent, parties who went to court will not pressure me into authorising unverified pending bills,” he added.
He also noted that claims currently under legal dispute will only be cleared after proper verification.