Gachagua Warns Social Health Authority Could Collapse Within Six Months
Speaking on Sunday, March 29, during a church service at the Anglican Church of Kenya Diocese of Kirinyaga in Ndia Constituency, Gachagua described the country’s healthcare system as being under mounting pressure, citing delayed payments and growing financial strain on hospitals.
“Today, as we speak, our hospitals, especially the faith-based hospitals, are owed Ksh90 billion and are almost shutting down,” Gachagua said, warning that continued delays in settling claims could cripple service delivery nationwide.
He added that the ripple effects of a potential collapse would be severe, arguing that the stability of the entire healthcare system hinges on the sustainability of SHA.
“If SHA collapses, all our hospitals will collapse. Our hospitals should demand the release of the Ksh90 billion before they render services,” he stated.
Mounting Pressure on Healthcare System
The former deputy president’s remarks come amid growing concerns from healthcare providers over delayed reimbursements and operational challenges linked to the transition from the now-defunct National Hospital Insurance Fund (NHIF) to SHA.
According to available data, total arrears owed to hospitals are estimated at over Ksh76 billion, including legacy debts inherited from NHIF. While the government has recently disbursed funds in an effort to ease the burden, stakeholders say the payments have not been sufficient to stabilise the sector.
In March alone, the government released Ksh15.4 billion to healthcare providers, alongside an additional Ksh4.1 billion aimed at clearing part of the NHIF backlog. Despite this, many hospitals continue to report cash flow constraints, with some warning of reduced services or possible closures.
Faith-based and private hospitals, which form a significant portion of Kenya’s healthcare network, have been particularly vocal, citing delayed reimbursements that have disrupted operations and strained resources.
Call for New Payment Model
“I propose and advise the hospitals to consider demanding up-front payment from the SHA. They demand a monthly average and get paid in advance,” he said, suggesting that advance payments could help institutions maintain liquidity and continue offering services without disruption.
He argued that relying on delayed reimbursements exposes hospitals to financial instability, especially at a time when operational costs—including staffing, medical supplies, and infrastructure—continue to rise.
Government Response and Commitments
Officials maintain that SHA represents a long-term reform designed to expand access to affordable healthcare and reduce out-of-pocket expenses for Kenyans. However, the transition has been marked by logistical hurdles and concerns over system readiness.
Broader Political Context
While critics have pointed to systemic inefficiencies within SHA, government officials continue to defend the initiative, highlighting its potential to transform healthcare delivery if fully implemented.
As the debate intensifies, healthcare stakeholders, policymakers, and citizens alike are closely watching how the government addresses the financial and operational challenges facing SHA—concerns that could ultimately determine the future of Kenya’s public health system.
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Gachagua Warns Social Health Authority Could Collapse Within Six Months
