The Rural and Urban Private Hospitals Association of Kenya (RUPHA) has announced the immediate suspension of the Social Health Authority services nationwide due to delayed payment by the state’s health insurer.

In a notice dated Monday, September 22, 2025, RUPHA notified all SHA beneficiaries about the development, effective immediately unless stated otherwise.

”Please be advised that, effective today, all healthcare services (unless otherwise stated) at this facility for Social Health Authority (SHA) beneficiaries will be provided on a cash basis,” the notice read in part.

”This change follows a directive by the Rural & Urban Private Hospitals Association of Kenya (RUPHA), which represents private hospitals nationwide. The decision has been taken due to delayed and unsettled payments by SHA, which has made it unsustainable for hospitals to continue offering services on credit,” the statement continued.

The latest directive comes at a time when the Ministry of Health still insists that SHA is working, despite patients reporting disappointments in service delivery under the authority’s cover. Despite the suspension of SHA services, RUPHA noted that the move is aimed at ensuring essential health services are being offered by institutions under their umbrella seamlessly.

Elsewhere, Busia Senator Okiya Omtatah claimed that SHA was a form of extortion rather than a healthcare reform.

”We regret the inconvenience this may cause and assure you that this action is driven by our commitment to ensure that Hospitals remain open, essential supplies and equipment are available, and our staff can continue to serve you with the highest standards of care. We remain hopeful that these issues will be resolved promptly and that normal service arrangements with SHA will resume,” the statement added.

RUPHA warns about SHA functionality

The latest development comes shortly after RUPHA sounded the alarm over what it describes as costly failures in the digital systems rolled out under the Social Health Authority (SHA).

Also watch: Bishop Cleophas Oseso urges the government to address the SHA system challenges.

In a statement posted on its official X account on Wednesday, September 17, 2025, RUPHA said the authority has failed to deliver on key health technology platforms that were meant to strengthen fraud detection, beneficiary management, quality control, and drug tracking.

“Let us break down the problems with the SHA failed fraud detection (SHA ERP), failed beneficiary management platform, non-existent Quality Management System and what the recently launched ‘Kenya Pharmaceutical Information System – Track & Trace,” RUPHA said.

On quality control, RUPHA noted that the system, supposed to safeguard service delivery, had not been put in place despite significant allocations. “Quality Management System – Kshs 1.58B (enough to sort out KNH – NHIF arrears. Non-existent,” the statement read.