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    SHA explains disbursement of Sh20 million to ‘ghost Nyandiwa Dispensary’

    KahawaTungu ReporterBy KahawaTungu ReporterAugust 22, 2025Updated:August 22, 2025No Comments2 Mins Read
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    The Social Health Authority (SHA) has explained how and why it disbursed almost Sh20 million to a ghost facility in Gwassi, Suba South, Homa Bay County.

    It termed the reports as false, misleading, and undermine basic principles of responsible journalism such as accuracy, fairness, and balance.

    Chief Executive Officer Dr Mercy Mwangangi explained that Nyandiwa Level 4 Hospital, Gwassi, Suba South, Homa Bay County, which received the funds has been operational since the 1970s.

    The facility was formerly Nyandiwa Dispensary and was subsequently upgraded to a Level 4 hospital.

    “In line with standard practice, the hospital retained its existing bank account under the name “Nyandiwa Dispensary” as it transitioned to Level 4. Many facilities across the country that began as dispensaries or sub-district hospitals maintain their original bank account names after upgrading.”

    “The disbursement of Sh19,998,720 represents legitimate and accumulated claims duly processed in line with SHA’s strict verification and payment protocols,” said Dr Mwangangi.

    She added to date, the facility has received Sh751,504 under Primary Health Care (PHC) and Sh82,080,706 under the Social Health Insurance Fund (SHIF), all acknowledged by the facility.

    These are accumulated payments from October 2024, she added.

    She added the abandoned structure shown in the media is one of the incomplete facilities built by a former County administration and has never been contracted by SHA and has no transacting rights.

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    “The public can access all payments made to facilities on the SHA website, which are posted after each disbursement. These are not representative of one month’s claims, since the adjudication and verification process is continuous and happens at different stages.”

    “The payouts also represent different benefit packages such as inpatient, outpatient, surgical, maternity, dialysis, mental wellness and rehabilitation, medical imaging, and haematology/oncology services and therefore a simple eyeball comparison between one facility and another would lead to inaccurate deduction,” she explained.

    She added payments under Primary Health Care Fund (PHCF) have already been disbursed and more payments for various packages are expected to be disbursed today and on Monday August 25.

    “SHA does not and will never disburse funds to non-existent or uncontracted facilities. Every payment is subject to rigorous verification to safeguard public funds and strengthen health service delivery.”

    The news had attracted condemnation online with many terming it fraud.

    Email your news TIPS to Editor@Kahawatungu.com — this is our only official communication channel

    Nyandiwa Dispensary SHA
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