Former Deputy President Rigathi Gachagua has issued a stark warning about the impending collapse of the Social Health Authority, suggesting that the government’s insurance program may encounter significant operational difficulties within the coming half-year.
During an address at the ACK Diocese of Kirinyaga in Ndia Constituency on March 29, Gachagua portrayed a bleak scenario for the nation’s healthcare infrastructure, emphasizing that immediate action is required to prevent what could become a nationwide healthcare service disruption if the SHA fails.
According to Gachagua, “I possess information indicating that the SHA will cease functioning within six months, precipitating a crisis within our health sector.”
The former Deputy President explained that outstanding payments due to hospitals from the SHAparticularly those operated by religious organizations and private entitiesare compromising the stability of the entire healthcare framework. He asserted that these institutions are currently owed approximately Ksh90 billion by the government, a financial burden that could force hospital closures.
“At present, our hospitals, particularly those affiliated with faith-based organizations, are owed Ksh90 billion and are approaching the point of closure,” he added.
Gachagua offered guidance to healthcare institutions, stating, “If the SHA collapses, all hospitals will follow suit. Our healthcare facilities should demand the release of the Ksh90 billion before providing further services.”
These assertions emerge amid ongoing financial challenges within the healthcare system, including unresolved obligations from the former National Hospital Insurance Fund (NHIF).
The government has allocated funds to indebted hospitals, recently distributing Ksh15.4 billion in March. Additionally, Ksh4.1 billion was provided to settle part of the outstanding NHIF liabilities.
Even with these payments, healthcare institutions continue to request additional support from the Ministry of Health, a situation Gachagua believes could lead to facility shutdowns.
To address the developing crisis, the leader of the Democracy for the Citizens (DCP) party recommended that hospitals, which have long endured these difficulties, should cease waiting for delayed reimbursements.
Gachagua posits that this approach would safeguard their financial standing and maintain uninterrupted patient care.
“I suggest that hospitals request advance payments from the SHA. They should calculate their typical monthly requirements and receive compensation upfront,” the former Deputy President added.
The Ministry of Health has pledged to process future hospital claims by the 14th of each month to promote financial stability.