RUPHA raises alarm as ghost hospitals siphon millions of shillings in SHA claims
Investigations have linked the scheme to Nicholas, a former claims officer at a leading hospital in Kisii, and Oyaro, an anaesthetist from Homa Bay. The two are accused of running their operations from personal vehicles rather than from a legitimate healthcare facility.
Whistleblowers have uncovered a medical fraud racket in which non-existent hospitals allegedly siphoned millions of shillings from Kenya’s health system, the Rural & Urban Private Hospitals Association of Kenya (RUPHA) has revealed.
At the centre of the matter is Trenya Hospital Limited, which RUPHA described as “a hospital in a phone.”
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Despite never existing physically, the supposed facility admitted and discharged patients remotely and still managed to receive more than Sh10 million before being flagged and closed by inspectors from the Kenya Medical Practitioners and Dentists Council (KMPDC) in Kisii County.
Investigations have linked the scheme to Nicholas, a former claims officer at a leading hospital in Kisii, and Oyaro, an anaesthetist from Homa Bay. The two are accused of running their operations from personal vehicles rather than from a legitimate healthcare facility.
RUPHA also cited the case of BFN Hospital in Nyamira, associated with the same group, which received another Sh10 million in questionable payments before KMPDC shut it down.
The network is said to have later rebranded in Kisii under the Trenya Hospital name, presenting itself as a Level 3 facility with 139 beds, despite having no theatre, no medical equipment, and no physical beds.
“How can a Level 3 facility claim to have 139 beds when KMPDC had already pulled down most beds in Level 3B facilities?” RUPHA asked.
The association warned that the case exposes major loopholes in Kenya’s health oversight system and urged government agencies to act urgently.
It raised concerns over the failure of the artificial intelligence fraud detection systems promised by the government and criticised the defunding of KMPDC.
RUPHA appealed to the Cabinet Secretary and Members of Parliament to step in, saying fraudsters continue to exploit the system while genuine healthcare providers face long delays in payment.
The revelations come as the Social Health Authority (SHA) faces a separate storm over allegations that it allocated Sh20 million to Nyandiwa Level 4 Hospital in Homa Bay County, which critics claimed had been abandoned for years.
The uproar began after SHA’s disbursement list, circulated widely online, showed Nyandiwa hospital among recipients of funding.
Critics posted photos of the facility’s deserted compound and overgrown grounds to back their claims.
A report by NTV appeared to confirm the suspicions, showing no medical activity at the site and footage of a cow grazing inside the compound.
SHA has, however, dismissed the allegations as false. Chief Executive Officer Mercy Mwangangi insisted that Nyandiwa hospital has been running since the 1970s and described the reports as misleading.
“The SHA has noted with concern a misleading article published on August 22, 2025, alleging that SHA disbursed Sh20 million to a ghost facility,” the authority said in an official statement.
“These claims are false, misleading, and undermine the fundamental values of credible journalism , including fairness, accuracy, and balance.”
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