Kenya’s healthcare system is facing renewed scrutiny after former Deputy President Rigathi Gachagua issued a stark warning that the country could be headed for a major medical crisis, citing deepening financial strain within the Social Health Authority (SHA).
Speaking on Sunday, March 29, Gachagua claimed the state-run insurer is teetering on the edge of collapse, raising concerns about the sustainability of healthcare services if urgent measures are not taken.
Addressing congregants at the ACK Diocese of Kirinyaga in Ndia Constituency, Gachagua painted a grim outlook, warning that the situation could deteriorate within the next six months. “I have information that SHA will collapse in six months and we will have a crisis in the health sector,” he said. He attributed the looming crisis to massive unpaid debts owed to hospitals, particularly faith-based and private institutions, which he said are struggling to stay afloat due to delayed reimbursements.
According to the former DP, the government owes hospitals tens of billions of shillings, with some estimates placing the figure as high as Ksh90 billion. He warned that continued delays in settling these arrears could force facilities to shut down, crippling service delivery nationwide.
“Today, as we speak, our hospitals, especially the faith-based hospitals, are owed Ksh90 billion and are almost shutting down,” he stated, urging hospitals to demand payment before offering services if the situation worsens.
His remarks come amid ongoing financial challenges facing SHA, with total arrears reportedly exceeding Ksh76 billion, including liabilities inherited from the now-defunct National Hospital Insurance Fund (NHIF). While the government has recently disbursed Ksh15.4 billion and an additional Ksh 4.1 billion to ease the burden, healthcare providers continue to push for more comprehensive settlements.
To cushion themselves, Gachagua advised hospitals to adopt stricter financial safeguards, including negotiating upfront payments or monthly advance reimbursements from SHA. He argued that such measures would help stabilize operations and ensure continuity of care even in the face of delayed government funding. Meanwhile, the Ministry of Health has pledged to settle future claims by the 14th of every month in a bid to restore confidence in the system.