Pressure is mounting on government to settle billions owed to the former National Health Insurance Fund after private hospital owners disclosed that key ministries and state bodies have pending bills running into Sh13.8 billion, with the Health Ministry carrying the biggest backlog.
In a breakdown shared by the Rural Private Hospitals Association of Kenya, the Health Ministry led by Cabinet Secretary Aden Duale owes Sh7.8 billion in unpaid premiums tied to major social health schemes.
The Ministry of Public Service follows with Sh3.47 billion linked to the civil servants’ medical cover, while the Interior docket has an outstanding Sh1.64 billion for the National Police Service medical scheme.
The association explained that the Health Ministry’s pending liabilities cover several subsidy and maternal health programmes, including Sh2.12 billion for Linda Mama, Sh1.42 billion under the programme for orphans and vulnerable children, Sh289 million for older persons and persons with severe disabilities, and Sh4 billion for indigent households under the universal health coverage roll-out.
RUPHA said the situation threatens service continuity and urged the state to honour its obligations without delay.
“It is instructive to note that the Ministry of Health owes the lion's share at Sh7.8 billion, followed by the Ministry of Public Service (Civil Servants Medical Scheme) at Sh3.47 billion. So, Cabinet Secretary Aden Duale, when is your ministry settling its 7.8 billion? This is enough for 91 per cent of all hospitals in Kenya,” RUPHA said.
The association added that parastatals owe Sh60.5 million while county governments have Sh804.5 million outstanding, raising concern over delayed payments to facilities serving millions across the country.
This comes at a time when government has begun shifting its health financing model, phasing out Linda Mama and adopting a household-based approach under the newly formed Social Health Authority. The change aims to widen coverage to vulnerable homes and stabilise the health fund following previous challenges.
Appearing before senators this week, Duale defended the transition, saying the maternity scheme had reached many mothers but needed reforms.
“The Linda Mama programme is not currently administered under the Social Health Authority infrastructure,” Duale said. “While the programme was instrumental in expanding access to free maternal care, it faced very critical challenges that led to the need for a more comprehensive and sustainable model.”
He said the reforms are anchored in four new health laws approved by Parliament to support universal health coverage.
RUPHA maintained that without clearing the arrears, health facilities face pressure and may struggle to provide services as the new system is rolled out.
