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Governors Sound the Alarm: SHA Teeters on Brink of Collapse Amid Payment Chaos

Lawrence Avatar
Lawrence
January 21, 2026
Governors Sound the Alarm: SHA Teeters on Brink of Collapse Amid Payment Chaos

Council of Governors slams Social Health Authority over delayed funds, crippling county hospitals and jeopardizing Universal Health Coverage

Kenya’s county leaders are fed up. The Council of Governors (CoG) has issued a stark warning over the Social Health Authority (SHA), accusing the national health insurer of persistent failures that are pushing public hospitals to the breaking point.

Delayed payments, system glitches, and mounting debts have left facilities struggling to stock essential drugs, pay staff, and treat patients. As the flagship scheme meant to deliver Universal Health Coverage (UHC) faces its toughest test yet, governors are demanding urgent reforms—or risk a full-blown healthcare crisis.

“These are not teething problems; they are systemic failures threatening lives,” one governor reportedly told journalists, echoing frustrations across counties. The outcry comes despite government pledges to stabilize SHA after its rocky transition from the defunct National Hospital Insurance Fund (NHIF).

In Siaya County, health facilities are “on their knees,” with millions in unpaid SHA claims forcing some to turn away desperate patients. Similar stories emerge from Murang’a, where Governor Irungu Kang’ata revealed SHA owes the county a staggering KSh 250 million. Kakamega and Tharaka Nithi leaders have raised red flags over discrepancies in claims and stalled reimbursements.

These delays have triggered medicine shortages, unpaid supplier bills, and demoralized healthcare workers. In some regions, facilities are dipping into emergency funds just to stay operational. “Without timely capitation, our hospitals can’t function,” CoG leaders argue, pointing to a recent agreement with President William Ruto for funds release by the 3rd of each month—starting January 2026—that appears to be faltering.

Insiders have also exposed troubling allegations: SHA officials allegedly fast-tracking higher payouts for connected individuals while ordinary Kenyans foot bills out-of-pocket. Such claims fuel public distrust in a system already battling low registration and access barriers.

Health Principal Secretary Harry Kimtai Oluga recently claimed SHA issues have been “stabilized,” with ambitions to register 45 million Kenyans by mid-2026. The government highlights progress: over 19 million enrolled by late 2025 and ongoing hospital reforms in partnership with CoG.

Yet governors insist rhetoric doesn’t match reality. They want immediate Treasury compliance on fund transfers, full debt settlement, and a review of service cadres under SHA. Some counties have even threatened to opt out of certain arrangements if demands go unmet.

SHA was hailed as a game-changer for affordable care, but 2026 is shaping up as make-or-break. With labor unrest simmering—clinical officers recently striking over inclusion in the scheme—and international partnerships under scrutiny, the stakes couldn’t be higher.

As one CoG official put it: “Kenyans deserve health security, not excuses.” Will the government act swiftly to rescue SHA, or will county pushback derail UHC dreams? The nation watches—and waits—for answers.

 

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