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Health Cabinet Secretary Aden Duale has intensified the fight against fraud targeting the recently launched Social Health Authority (SHA) Fund, shutting down 31 private hospitals found engaging in illegal activities.
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Speaking in Kisumu on Sunday, Duale revealed that several healthcare facilities across the country had been closed for exploiting loopholes in the public health scheme to siphon funds meant for Kenyans.
“We have already closed seven facilities here in Kisumu and others in Bungoma, Busia, Nairobi, Mandera, Wajir, Kajiado, and Kilifi,” Duale announced.
The Health CS warned that corrupt practices that plagued the now-defunct National Health Insurance Fund (NHIF) would not be tolerated under SHA.
“You cannot continue stealing public funds as was the case with NHIF. We are putting an end to it,” he said.
Investigations have uncovered various forms of malpractice, including falsifying patient records, submitting duplicate claims, and inflating hospital capacity. Some small clinics with as few as 14 beds were fraudulently billing the system as though they operated 100-bed facilities.
The Ministry has also exposed cases of fake patient admissions, unnecessary hospital stays, and the misuse of pre-authorisation codes, which some healthcare workers have been providing to help facilities file bogus claims.
“To those healthcare workers giving out codes for false claims—we are coming for you,” Duale warned.
He further revealed that some hospitals were double-charging both the SHA Fund and patients for the same services, an illegal practice that undermines the goal of universal health coverage.
Affected patients are encouraged to report such incidents through the SHA toll-free line 147.
Duale also criticised certain hospitals for attempting to lobby his office to block ongoing investigations.
“Let me be very clear—several case files are being submitted to the DCI on Monday morning. We will not bow to pressure or backroom deals,” he stated.
The SHA Fund, introduced to replace NHIF, aims to deliver transparent, accountable, and fair access to healthcare for all Kenyans.
Duale reaffirmed that the Ministry is determined to dismantle corruption networks within the health sector.
“We have entered a new era. The culture of looting health funds ends now. We are committed to protecting Kenyans’ right to affordable, quality healthcare,” he added.
The Ministry has warned that anyone—including doctors, patients, or facility owners—found guilty of defrauding SHA will face legal action.
“Stealing from the SHA Fund is not just unethical—it is a criminal offence, and we will respond firmly,” Duale concluded.
