The Social Health Authority (SHA) has suspended 40 health facilities for engaging in fraudulent activities.
In a special gazette notice dated August 7, 2027, SHA Chief Executive Officer Mercy Mwangangi said the suspensions were made under Section 48(6) of the Social Health Insurance Act, 2023.
“In accordance with the provisions of the Act, the health facilities listed in the schedule shall not be entitled to any benefit from the Social Health Authority during the period of their suspension,” the notice reads.
Health Cabinet Secretary Aden Duale, speaking to the media on Friday, August 8, confirmed the suspensions, saying the affected facilities had engaged in corruption, theft of public resources, and fraudulent claims.
“The suspension is effective immediately,” Duale said, adding that the facilities will also be surcharged to return money obtained through false claims.
According to the CS, investigations revealed that some hospitals inflated costs by billing for more expensive procedures than those actually performed.
“For example, a facility in Nairobi lodged a claim for a procedure worth KSh201,600 after only performing one worth KSh89,600—an overclaim of more than KSh112,000,” he said.
Other fraudulent practices included converting outpatient cases into inpatient ones and billing for patients who were already admitted to other hospitals.
Duale said the Ministry of Health will continue to investigate and take action against any facility involved in misusing public health funds.
List of Suspended Health Facilities
Gazette Vol. 168 7-8-25 Special (Facilities)
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