Hospitals Struggle With Soaring Medical Costs

Kenyan hospitals are grappling with sharply rising operational costs, putting pressure on both healthcare providers and patients. According to Business Daily, top hospitals such as Kenyatta National Hospital (KNH), Mater, and Karen Hospital have raised fees by up to 40% over the past few months. The hikes are largely driven by increased costs of diagnostics, medicines, labor, and utilities.
A significant factor behind this surge is the weakening of the Kenyan shilling. Hospitals report that imported medical supplies and equipment have become much more expensive, as Kenya sources around 60% of its medicines and 90% of medical equipment from abroad. This increase in cost is being passed on to patients, especially in private and referral hospitals.
Compounding the problem, many hospitals are facing critical cash-flow challenges due to delayed reimbursements from the Social Health Authority (SHA). A survey by the Rural & Urban Private Hospitals Association (RUPHA) showed that nearly 94% of private facilities are struggling to meet payroll and supply costs. Some hospitals are also delaying payments to suppliers, leading to shortages in essential medical supplies.
On the procurement front, KEMSA (Kenya Medical Supplies Authority) has called for a more reliable county financing mechanism, arguing that many counties owe it significant sums. These delayed county payments have hampered KEMSA’s ability to maintain a steady supply of medical commodities — further driving up costs.
In response, the Ministry of Health has signed a strategic agreement with KEMSA, SHA, and other partners to boost medical commodity security. President William Ruto has also made a major intervention, providing a KSh 10 billion facility to KEMSA to help it increase its stock-refill rate from 50% to 100%.
The combined effect of higher fees, currency pressure, and supply chain challenges is making healthcare less affordable, threatening Kenya’s Universal Health Coverage goals — especially for poorer and middle-class families.