GOVERNMENT SHUTS DOWN 35 HOSPITALS FOR SHA FRAUD

Health Cabinet Secretary Aden Duale has issued a firm warning to private health facilities accused of defrauding the Social Health Authority(SHA) Fund. Speaking during a fundraiser at Tom Mboya Labor Collage in Kisumu County on June 29, 2025, he announced that the government has shut down 35 hospitals across the country for engaging in fraudulent and unethical practices targeting the SHA Fund. He voiced serious concerns over the increasing number of fraudulent claims that threaten to undermine the integrity of Kenya’s health system. Duale was accompanied by Energy Cabinet Secretary Opiyo Wandayi, National Assembly Majority Leader Kimani Ichung’wah, and other leaders. He confirmed that seven private hospitals in Kisumu County have already been shut down for their involvement in fraudulent activities.

 He detailed schemes used to exploit the SHA Fund, including converting outpatient cases into inpatient ones to inflate claim reimbursements, coercing health workers to admit patients without any medical justification to increase claim values, and grossly exaggerating bed capacity in a bid to collect higher payouts. In some cases, some facilities submitted claims for non-existent patients. He further warned against the misuse of SHA pre authorization codes to enable fraudulent billing, which is a blatant violation of professional conduct. In his warning, Duale said medical facilities found engaging in such activities would not only be shut down but also face prosecution as well.

 Duale assured the public that the government would continue nationwide operations to eliminate fraudulent actors and safeguard the SHA Fund, which is key to achieving universal healthcare in Kenya. This is the latest crackdown by the government on fraud surrounding SHA, amid an intense effort to clean up the scheme’s image.