Gachagua Warns Social Health Authority Could Collapse Within Six Months
Former Deputy President Rigathi Gachagua has raised alarm over the stability of Kenya’s healthcare system, warning that the Social Health Authority (SHA) could collapse within the next six months.
Speaking on Sunday, March 29, at the ACK Diocese of Kirinyaga in Ndia Constituency, Gachagua painted a grim picture of the situation, cautioning that the potential failure of the government-run health insurance scheme would trigger a nationwide crisis.
“I have information that SHA will collapse in 6 months and we will have a crisis in the health sector,” he warned.
Mounting Debt Threatens Hospital Operations
Gachagua attributed the looming crisis to massive unpaid debts owed to hospitals by SHA, particularly affecting faith-based and private health facilities.
According to the former DP, hospitals are struggling under the weight of delayed reimbursements, with some reportedly on the verge of shutting down due to financial strain.
“Today, as we speak, our hospitals, especially the faith-based hospitals, are owed Ksh 90 billion and are almost shutting down,” he claimed.
He warned that if the situation is not addressed urgently, it could lead to a total breakdown of healthcare service delivery across the country.
Hospitals Advised to Demand Upfront Payments
In a controversial proposal, Gachagua urged hospitals to adopt new financial safeguards to protect themselves from delayed payments.
He advised healthcare facilities to demand upfront payments or negotiate advance monthly disbursements from SHA instead of relying on reimbursements.
“I propose and advise the hospitals to consider demanding up-front payment from the SHA. They demand a monthly average and get paid in advance,” he said.
According to him, such a move would help stabilize hospital operations and ensure continuity of patient care even amid financial uncertainty.
Government Efforts to Clear Arrears
The warning comes at a time when the government is already grappling with significant arrears owed to healthcare providers.
Reports indicate that total outstanding claims exceed Ksh 76 billion, including debts inherited from the now-defunct National Hospital Insurance Fund (NHIF).
In an effort to ease the pressure:
- The government recently disbursed Ksh 15.4 billion in March
- An additional Ksh 4.1 billion was released to clear part of NHIF arrears
Despite these payments, hospitals continue to demand full settlement, arguing that partial disbursements are insufficient to sustain operations.
Ministry of Health Responds
The Ministry of Health has sought to reassure stakeholders by committing to more timely payments going forward.
Officials have pledged that all future hospital claims will be settled by the 14th of every month, a move aimed at restoring confidence in the system and preventing further disruption.
However, concerns remain over whether the government can consistently meet these obligations given the scale of existing debt.
Healthcare System at a Crossroads
Gachagua’s warning adds to growing anxiety over the future of Kenya’s healthcare financing model.
If SHA were to collapse, the consequences could be severe:
- Disruption of essential health services
- Closure of private and faith-based hospitals
- Increased out-of-pocket costs for patients
- Strain on public health facilities
The coming months are likely to be critical in determining whether reforms and financial interventions can stabilize the system or whether the country faces a full-blown healthcare crisis.