Defence Cabinet Secretary Aden Duale has suspended 40 hospitals and 12 health officials over allegations of defrauding the Social Health Authority (SHA) system.
The suspended facilities are accused of unlawfully exploiting the health insurance system for financial gain. According to CS Duale, the affected hospitals and individuals manipulated the SHA platform to receive payments for services that were never provided. He stated that this kind of fraud not only violates the law but also undermines the integrity of the country’s universal health coverage program.
“Any doctor or health official involved in defrauding SHA will be held responsible,” Duale warned during a press briefing. “We will hand over all the hospitals and the 12 health officials to the DCI for further investigations. Additionally, we have ordered the relevant regulatory bodies to cancel their licences.”
The government launched the SHA to ensure that Kenyans, especially those from low-income backgrounds, could access affordable healthcare. However, the latest revelations suggest that some health providers are taking advantage of the system for personal profit.
Duale noted that a joint effort involving multiple government agencies uncovered the fraudulent activities. He emphasised that the crackdown on such corruption is part of a broader effort by the government to protect public resources and restore public trust in the health sector.
The suspension of these facilities means affected patients may need to seek treatment elsewhere, although the government has promised to ensure continuity of care. Duale assured the public that alternative health centres are being identified to take in patients who were using the suspended facilities.
He further urged the public to report any suspicious activities related to health insurance claims. “This is a shared responsibility. We ask Kenyans to be vigilant and help us stop this theft of public resources,” he said.
Investigations into the SHA fraud are still ongoing, and the Directorate of Criminal Investigations (DCI) is expected to take over the matter to determine if criminal charges will be filed against the implicated hospitals and officials.
The crackdown signals a serious warning to health institutions across the country: abuse of the SHA system will not be tolerated.
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