Private Hospitals Accused of Overpricing Life-saving Drugs

The Ministry of Health is facing growing criticism after Principal Secretary Ouma Oluga exposed a pattern of overcharging by some private hospitals, particularly for essential medicines. In public statements, he revealed that a painkiller such as Panadol, which costs private hospitals as little as KSh 30, is being sold to patients for as much as KSh 1,500. Oluga added that this is part of a broader pattern of fraud, with markups of 20–35% across multiple private facilities.
Critics say the overpricing is especially egregious for life-saving treatments. For instance, cancer patients have reported that Herceptin — a critical breast cancer drug — can cost KSh 100,000 per dose in some private hospitals. The situation has raised serious equity concerns, as many patients struggle to afford these therapies outside public and insurance‑covered facilities.
The cost pressures faced by private hospitals are partly linked to delayed reimbursements. Many private facilities, especially those in rural areas, have suspended SHA (Social Health Authority) services, citing unpaid NHIF (formerly NHIF) claims totaling KSh 22–30 billion. The financial strain is said to be fueling cost-cutting and price inflation in areas such as drug procurement.
In response, the Ministry of Health has launched a crackdown on non-compliant facilities. According to Health Cabinet Secretary Aden Duale, several hospitals are under audit, and some may face license revocation if found guilty of inflating drug prices or overbilling patients. Regulatory authorities say they are committed to protecting patients and ensuring that life-saving drugs remain accessible and affordable.