Healthcare facilities across Kenya have rejected sharply reduced payment offers from the Social Health Authority (SHA), escalating a dispute over billions of shillings in outstanding claims inherited from the defunct National Health Insurance Fund (NHIF).
The disagreement follows the government's release of Sh4 billion to settle historical NHIF debts owed to healthcare providers. The funds were intended to clear verified claims for 3,527 medical facilities with outstanding balances of Sh10 million and below.
However, hospital owners say the amounts being offered fall far short of what they are owed, with many facilities reportedly receiving settlement offers ranging between just 10 and 40 percent of their verified claims.
The healthcare providers argue that accepting the reduced payments would force them to forfeit the remaining balances, a move they say would place further financial strain on hospitals already grappling with operational costs and delayed reimbursements.

