Kenya’s Health Cabinet Secretary, Aden Duale, has taken decisive action by suspending 40 hospitals from the Social Health Authority (SHA) programme over alleged large-scale fraudulent practices. The move comes amid ongoing investigations into corruption and misuse of public health funds within the sector.
Speaking during a press briefing on Friday, CS Duale revealed that the Ministry of Health will publish the names of the affected hospitals in a Gazette Notice after thorough investigations by the Directorate of Criminal Investigations (DCI) are completed.
“The Social Health Authority has suspended these health facilities found to have engaged in corruption and theft of public resources. Their reinstatement will only happen once they comply fully with SHA regulations,” Duale declared.
NO BENEFITS DURING SUSPENSION AND RECOVERY OF FUNDS
The suspended hospitals will not be entitled to receive any SHA payments during the investigation period. Additionally, the Ministry has committed to recovering all funds already paid to these facilities for fraudulent claims.
Duale confirmed that the government will surcharge the hospitals to reclaim money obtained through deceitful practices.
TYPES OF FRAUD IDENTIFIED IN HOSPITALS
According to the CS, the fraudulent schemes uncovered in the investigation included:
- Multiple billing for the same patient.
- Classifying outpatients as inpatients to inflate charges.
- Submitting inflated invoices for non-existent services.
These manipulations, Duale explained, drain public resources and undermine Kenya’s efforts to provide affordable universal healthcare.
DOCTORS AND CLINICIANS IMPLICATED
The Ministry also suspended eight doctors from Nairobi, Bungoma, and Kilifi counties for direct involvement in the scams. Four clinicians linked to facilities in Nairobi and Homa Bay counties have also been barred from practice under SHA.
In accordance with Clause 16, Sub-clause 4.5 of the facility contract, SHA has withdrawn user rights for these doctors and clinical officers from all SHA and digital health platforms. The Kenya Medical Practitioners, Pharmacists and Dentists Union (KMPDU) has been formally notified to enforce this decision.
GOVERNMENT WARNING TO HEALTHCARE PROVIDERS
CS Duale urged all healthcare providers to uphold ethical medical practices and reminded them that all legitimate medical procedures can be covered by SHA if processed transparently.
“Any healthcare provider whose information is used to defraud SHA shall be held personally liable,” the CS warned.
KENYA’S PUSH FOR TRANSPARENCY IN HEALTHCARE
The crackdown forms part of a broader government strategy to eliminate corruption in Kenya’s healthcare system and ensure that public funds are used to improve services for ordinary citizens.
Kenya plans to strengthen SHA oversight, enhance digital monitoring systems, and collaborate with investigative agencies to track fraudulent claims in real time.
