Govt Suspends 45 More Hospitals Over SHA Fraud

The government has suspended 45 more health facilities from the Social Health Authority (SHA) over fraud claims.

In a gazette notice issued on Tuesday, August 26, 2025, SHA Chief Executive Officer Mercy Mwangangi said the facilities will not be entitled to any benefits from the scheme during the suspension period.

This comes a day after Health Cabinet Secretary (CS) Aden Duale announced that the hospitals risk being struck off the register after being flagged for fraudulent activities.

He said investigations into the facilities will begin immediately. Earlier this month, SHA had already suspended 40 other hospitals.

According to the CS, recent audits revealed widespread fraud. Some facilities were found to have billed for procedures that were never done, falsified medical records, charged inpatient fees for outpatient visits, and even claimed payments for non-existent patients.

List of 45 Suspended Hospitals

“To all healthcare providers: consider this a final warning. We are watching. Any facility, doctor, or patient found to be involved in fraudulent activities will be held liable and face the full force of the law,” Duale warned. He said the government has already begun the process of recovering money and will involve law enforcement to prosecute offenders.

The CS also urged Kenyans to be vigilant and report suspicious activities. “Please work with us to ensure that every cent of public money is used prudently for its intended purpose: to provide legitimate, quality healthcare to all. Report any concerns through SHA’s toll-free number 147,” he said.

Meanwhile, the Central Organization of Trade Unions (Kenya), COTU (K), has raised concern over the challenges facing SHA, accusing the Ministry of Health (MoH) and the Digital Health Authority (DHA) of undermining its independence.

COTU Secretary General Francis Atwoli said the union has been seeking an urgent meeting with CS Duale for a month without success. He argued that SHA operations depend entirely on an IT platform controlled by MoH and DHA, despite the law establishing SHA as an independent body.

Atwoli, who represents workers on the SHA Board, said the authority has been reduced to a “conveyor belt” for processing payments without control over hospital claims. “As workers, we contribute faithfully to the Social Health Insurance with the understanding that SHA is in charge of our funds. It is unacceptable that workers’ hard-earned money is managed through an amorphous arrangement,” he said.

He added that unless SHA is given full control of its IT systems, workers will lose trust in the scheme. COTU is considering withdrawing from the SHA Board if the issue is not addressed and will soon hold a meeting at Tom Mboya Labour College to decide on its next steps.

SHA has been under growing criticism in recent months for fraud and irregular payments to non-existent or inactive facilities.