KENYA: ‘We Cannot Afford to Take in More Debt,’ Faith-Based Health Providers Demand Immediate NHIF, SHA & MAKL Payments

By Paschal Norbert

NAIROBI, MARCH 7, 2025 (CISA) – Faith-based health facilities in Kenya are facing a severe financial crisis due to the failure of the government to settle outstanding debts owed under the defunct National Hospital Insurance Fund (NHIF), the Social Health Authority (SHA), and the Medical Administrators Kenya Limited (MAKL).

The Kenya Faith-Based Health Services Consortium, comprising the Kenya Conference of Catholic Bishops (KCCB), the Christian Health Association of Kenya (CHAK), the Supreme Council of Kenya Muslims (SUPKEM), and the Mission for Essential Drugs and Supplies (MEDS), has issued a 14-day ultimatum demanding immediate payments or they will be forced to suspend services to beneficiaries of these schemes.

Faith-based health facilities contribute approximately 40% of healthcare services in Kenya, with over 1,300 facilities spread across all 47 counties. However, only a fraction of these facilities have been empaneled under SHA, and even fewer had NHIF contracts before the transition. The consortium expressed its frustration over the mounting debts, which have left many hospitals struggling to pay staff salaries, suppliers, and operational costs.

“The faith-based health facilities are currently experiencing serious financial distress even as they struggle to continue offering healthcare services due to huge outstanding debts owed to them by the defunct NHIF and the current SHA and MAKL,” read the statement issued at Ufungamano Christian Students Center in Nairobi.

The consortium outlined the specific financial burdens they face. NHIF claims totaling Ksh. 8 billion remain unpaid, with some claims dating back to 2016. SHA claims amount to Ksh. 15 billion, with some exceeding the 90-day limit stipulated under the Social Health Insurance Act (2023). The SHA claims process involves up to 10 bureaucratic stages, causing delays of up to five months or more. Additionally, SHA regional offices are unable to provide adequate support, with critical decisions being referred to an external system developer, further complicating the process. MAKL claims for teachers, police, and prisons have gone unpaid since July 2024, despite the government funding these schemes with approximately Ksh. 20 billion annually.

The faith-based providers issued a series of urgent recommendations to address the crisis. They demanded full payment of all NHIF claims by March 21, 2025, and immediate settlement of SHA claims within the stipulated 90-day period, with all outstanding payments made by the same deadline. They called for the reduction of SHA claims processing stages to a maximum of 14 days and an increase in staffing to expedite clinical reviews and claim approvals. They also urged the empowerment of SHA regional offices to manage the claims system without reliance on external developers. Furthermore, they recommended the creation of a transparent SHA reconciliation portal to track invoice payments, adequate budgetary allocation for primary healthcare (PHC) to ensure timely capitation payments, and the integration of MAKL-funded government medical schemes into SHA for streamlined payments and service provision.

The consortium lamented the dire consequences of the financial strain, which has resulted in job losses, supply shortages, and threats of facility closures.

“The situation is very dire because we are unable to pay staff salaries, suppliers, and cater for other operational expenses necessary for providing healthcare services to deserving communities,” the faith leaders emphasized.

If the government does not act within 14 days, faith-based hospitals will have no choice but to suspend services to NHIF, SHA, and MAKL beneficiaries, requiring them to pay in cash for treatment.

“The faith-based leaders have reached a painful decision, since we cannot afford to take in more debt after numerous engagements with the Ministry of Health, SHA, and all necessary government leaders,” the statement concluded.

With the clock ticking, all eyes are on the government to see if it will heed the call and avert a healthcare crisis that could leave millions of Kenyans without access to vital medical services.