The Rural & Urban Private Hospitals Association (RUPHA) has strongly criticized the decision to suspend more than 40 hospitals from the Social Health Authority (SHA) program, blaming the fundamental flaws in the SHA model rather than the private health sector or the media.

In a statement issued on August 9, 2025, RUPHA accused Health Cabinet Secretary Aden Duale of unfairly shifting blame away from the deep financial and operational challenges facing the health insurance system.

RUPHA described the SHA framework as unstable and financially unsound, pointing out a sharp drop in revenue despite an increase in premiums.

“The CS Health has resorted to attacks on the private health sector and the media as the scapegoats for the flawed SHA model. SHA collected just Sh56 billion in the 9 months to July compared to NHIF’s Sh65 billion for the same period in 2021/22,” the association said.

The association noted that SHA’s collection of Sh56 billion over nine months to July 2025 was lower than the Sh65 billion collected by the former National Hospital Insurance Fund (NHIF) in the same period of the 2021/22 financial year, even though SHA had introduced higher premiums.

It also highlighted the failure of proxy means testing, which was intended to adjust contribution levels according to income, saying it has not delivered the expected results.

RUPHA further warned of the worsening financial health of SHA, revealing that during the same nine-month period, claims worth Sh89 billion were incurred, resulting in a deficit of Sh32 billion.

Instead of addressing these structural problems, the association claims SHA is punishing health facilities.

“Despite higher premiums, proxy means testing has failed. In the same period, SHA incurred claims worth Sh89 billion. SHA is in the red to the tune of Sh32 billion,” RUPHA said.

The association added that any facility requesting payment for services is being unfairly labeled a fraudster, cartel member, or accused of benefiting from corruption under the old NHIF system.

RUPHA stressed that blaming stakeholders and engaging in public relations efforts will not solve the crisis. It called for urgent reforms to save the SHA program from collapse.

This criticism follows the suspension of over 40 hospitals from the SHA program after investigations by the Directorate of Criminal Investigations (DCI).

On August 8, 2025, Cabinet Secretary Duale ordered the publication of the suspended hospitals’ names in a Gazette Notice.

The Ministry of Health has pledged to maintain strict oversight to protect the SHA program and ensure public funds are directed to legitimate healthcare providers.