The country’s healthcare sector is facing headwinds as President William Ruto’s administration drags feet in regards to pumping in funds to cater for accrued debts emanating from the defunct National Health Insurance Funds (NHIF) and service provision amid challenging economic times.

This has seen both private and public hospitals grapple with the procurement of crucial requirements such as medicines, medical equipment and payment of supporting staff at the facilities.

The failure to clear pending billings amounting to Sh30 billion owed to private hospitals per se, is forcing them out of business in that, they are now opting to place their assets on auction over the uncertainty of the payday. Ministry of Health, however, notes that it is on course to clear the pending bills to help dress the situation.

“SHA is reconciling NHIF debts through a meticulous audit process to ensure legitimate claims are settled. Sh8.6 billion has already been paid to clear pending NHIF debts, ensuring financial stability in the health sector,” the ministry said in a post on X on Wednesday.

“SHA has collected Sh20.9 billion and disbursed Sh18.2 billion (Sh16.97 billion for SHIF and Sh1.33 billion for PHC citation). Claims are processed within 30 days, improving efficiency and transparency.”

Despite the announcement, experiences from hospitals in regards to this, is different with most of them remaining uncertain of how they will continue to be in business. One of the notable private hospitals to face the issue of funding was the Kory Family Hospital which in January 24, this year announced that it was selling part of its underdeveloped land measuring 0.2471 acres in Bungoma County. 

“All intending purchasers are required to view the property and verify the details as these are not warranted by the auctioneers. A deposit of 10 per cent should be paid in cash or in bankers’ cheque at the fall of the hammer. The balance will thereafter be payable within 90 days of the chargee,” the public notice published via Garam investment reads in part.

Prior to this, Bealine Kenya Auctioneers in may 2023, announced the auction of repossessed medical equipment belonging to Velma Memorial Medical centre. “Duly instructed by our principals we shall sell by Public Auction the undermentioned goods/assets at Startruck Auction Yard situated along Kiambu Road, Fourway junction on Friday, 19th May 2023 starting from 10.30A.M,”

The company also announced a second wave of auctions.  “Duly instructed by our principals we shall sell by Public Auction the undermentioned goods/assets at VEMA MEMORIAL MEDICAL CENTRE LTD premises (INSITU) on Saturday, 20th May 2023 starting from 10.30A.M,”  Also, Savannah Medical Centre, located in upper hill announced a public auction of  its premises which was a three-storey building .

The Rural and Urban Private Hospitals Association of Kenya (RUPHA), representing hundreds of private and faith-based healthcare facilities nationwide, under the Social Health Authority (SHA) have been providing emergency treatment and pre-booked surgeries following the suspension of SHA services last Thursday.

RUPHA declared indefinite suspension of Social Health Authority (SHA) Services due to unpaid arrears and unworkable outpatient reimbursement model.