35 private hospitals closed over SHA fraud

Health Cabinet Secretary Aden Duale has issued a stern warning to private health facilities defrauding the Social Health Authority (SHA) Fund. 

Speaking on Sunday, during a funds drive at Tom Mboya Labour College in Kisumu County, CS Duale revealed that the government has already shut down 35 hospitals nationwide found to be engaging in unethical practices.

He expressed concern over a rising wave of fraudulent claims threatening the integrity of the health system.

“We have noted with great concern a growing trend of fraudulent activities being perpetrated by some healthcare facilities, healthcare workers, and even patients against the SHA Fund,” said Duale. 

“These actions are illegal, unethical, and a direct betrayal of the trust placed in our health system, ".

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Duale, who was accompanied by Energy CS Opiyo Wandayi, National Assembly Majority Leader Kimani Ichung’wah, and other leaders from across the country, confirmed that seven private hospitals in Kisumu had already been shut down today for participating in fraudulent activities.

He disclosed that some hospitals were converting outpatient claims into inpatient ones to inflate claim amounts, coercing medical staff to admit patients unnecessarily, and exaggerating bed capacities, sometimes claiming to have 100 beds while only operating 14. Others had gone as far as submitting claims for patients who did not exist.

“This is clear fraud. Facilities and health workers found colluding in such malpractices will be shut down, prosecuted, and held personally accountable,” Duale said.

He warned doctors and healthcare providers against sharing or misusing SHA pre-authorisation codes to steal from the Fund. 

“We are aware of cases where patients share their access codes with hospitals to fraudulently claim services not rendered. That is criminal fraud, and all involved will be prosecuted,” he stressed.

Duale assured the public that such operations would continue nationwide to weed out rogue players and protect the SHA Fund, which is central to Kenya’s universal healthcare agenda.

“Fraud against the SHA undermines our goal for universal health coverage. We will not hesitate to take strong and swift action against any individual or institution found culpable,” he said.

The crackdown sends a clear message: integrity in healthcare is non-negotiable, and the government is committed to ensuring the SHA benefits all Kenyans fairly and transparently.