Mbagathi CEO Says Social Health Authority Owes Hospital KSh167 Million, Crippling Services

Nairobi, Kenya — 2025-09-15 15:00 EAT. Mbagathi Hospital Chief Executive Officer Dr. Alex Irungu has accused the Social Health Authority (SHA) of paralyzing services at the public facility by failing to reimburse over KSh167 millionowed under Kenya’s new national health insurance scheme

The Latest

• Debt burden: Dr. Irungu said delayed payments have disrupted hospital operations, leaving Mbagathi struggling to buy supplies and pay staff〔

• County-wide arrears: Facilities across Nairobi County are owed around KSh500 million under the scheme

• Service suspensions: Mbagathi had halted treatment for prison inmates due to unpaid bills from the Ministry of Interior, but a court has since ordered partial settlement

Context in Brief

• On September 08, the High Court ordered the State Department for Correctional Services to pay Mbagathi at least KSh10 million within 14 days and directed the hospital to continue treating inmates until October 08, 2025

• The court reaffirmed prisoners’ constitutional right to healthcare and criticised the state for jeopardizing lives by withholding funds

Voices and Stakeholders

• Dr. Alex Irungu, Mbagathi CEO: “The SHA’s failure to reimburse hospitals is crippling essential services. We need immediate action.”

• Health policy experts: Stress that timely disbursements are vital to keep facilities operational as Kenya shifts to the new social health insurance model.

• Government officials: Have promised reforms to improve payment timelines but face criticism for slow implementation.

Implications

• Healthcare access: Delayed reimbursements risk service cuts, longer wait times, and potential emergency measures at public hospitals.

• Policy credibility: Payment bottlenecks threaten the public confidence in Kenya’s new social health insurance regime.

• Legal pressures: Court rulings could compel ministries to prioritise healthcare funding for vulnerable groups like inmates.

What to Watch

• Whether the SHA releases the KSh167 million owed to Mbagathi and settles debts across Nairobi hospitals.

• Possible parliamentary inquiries into delays in the national health insurance transition.

• Reforms to prevent payment backlogs under the new health financing framework.