The Kenyan government has issued a strong warning to private hospitals that are failing to comply with the Social Health Authority (SHA) regulations on outpatient services.
As quoted by Kenyans co ken, Health Principal Secretary Harry Kimtai made it clear on March 17, 2025, that any private healthcare facility refusing to provide SHA-mandated outpatient services risks having its license revoked.
This announcement comes at a time when there is growing tension between the government and private hospitals over the implementation of the SHA system.
Speaking in Embu County during the launch of digitization devices for healthcare, Kimtai expressed concern that many private hospitals were reluctant to participate in SHA’s primary healthcare funding.
He pointed out that statistics showed a number of private facilities were not offering outpatient services despite being required to do so under SHA regulations.

He warned that non-compliant hospitals could be denied registration and eventually closed if they failed to follow the rules.SHA replaced the National Health Insurance Fund (NHIF) as part of the government’s efforts to provide universal healthcare to all Kenyans.
Under the SHA system, outpatient visits are capped at KSh 2,000 per visit, with a maximum of four visits annually for beneficiaries at Level 2, 3, and 4 healthcare facilities.
However, private hospitals have raised concerns about the financial sustainability of this model, arguing that it does not cover the actual cost of treatment.
The standoff between the government and private hospitals is not new. Earlier this year, the Rural and Urban Private Hospitals Association (RUPHA) suspended SHA services, citing unpaid debts dating back to 2017.
These debts have caused financial strain, leaving many hospitals struggling with bank defaults and shortages of essential medicines.
The government, on the other hand, insists that all hospitals must comply with SHA regulations, regardless of financial difficulties.
As the government pushes for full implementation of SHA, private hospitals remain cautious, warning that they may be forced to stop offering outpatient services altogether if their concerns are not addressed.
Many hospital administrators argue that without proper funding, the SHA model will collapse, making it impossible for them to provide quality healthcare.
Some have also criticized the government for failing to settle pending payments from the NHIF era before demanding compliance with the new system.For Kenyans, this standoff means continued uncertainty regarding access to healthcare.
If private hospitals withdraw from SHA or are shut down for non-compliance, many patients could be left without reliable outpatient services.

The government insists that SHA is meant to improve healthcare for all, but without cooperation from private facilities, achieving universal health coverage will remain a challenge.
The coming weeks will be crucial in determining whether the government and private hospitals can find a way to resolve their differences or if the crisis in the health sector will deepen further.