Kenya Moja caucus calls for resignations of Duale, Mwangangi over SHA fraud

Pressure has mounted on the Ministry of Health after a section of lawmakers demanded the resignation of Cabinet Secretary Aden Duale, Social Health Authority (SHA) board chair Mohamed Abdi, and CEO Mercy Mwangangi over what they allege is a multi-billion shilling fraud at the new public health scheme.

The MPs, allied to the Kenya Moja caucus, accused the three of presiding over systemic looting, conflict of interest, and misuse of public funds through ghost facilities and irregular claims.

They warned that unless swift action is taken, SHA is on course to collapse faster than its predecessor, the National Health Insurance Fund.

“CS Duale must go. First, for conflict of interest. Second, for complacency. And third, for trying to hoodwink Kenyans with media theatrics, summoning cameras to harass and suspend facilities while putting up a tough face to mask the rot,” the MPs declared in a joint statement read by Kitutu Chache South MP Antony Kibagendi.

They demanded the immediate resignation of the SHA chairman, whom they linked to Ladnan Hospital, and the CEO, whom they accused of being complicit in the scandal.

“We demand the immediate resignation of the SHA chairman, who is directly associated with Ladnan Medical Facility, and the CEO, who has been complicit in facilitating this theft,” the statement added.

Nairobi Senator Edwin Sifuna, Funyula MP Wilberforce Oundo, Kitutu Masaba MP Clive Gisairo and Bomachoge Borabu MP Obadiah Barongo joined the caucus in accusing the Ministry of turning SHA into “a grand, calculated theft under the guise of universal healthcare.”

They said the scheme has become a conduit for irregular payments to non-existent facilities while genuine providers are intimidated or locked out.

Kenya Moja allied MPs say the Social Health Authority (SHA) is a “grand, calculated scam”, citing rushed implementation, lack of transparency, and questionable financial decisions.

They called out Health CS Aden Duale and SHA leadership, citing conflict of interest, as well as… pic.twitter.com/yXx9pfZfWS

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The MPs cited examples of payments to closed or unregistered hospitals, including Divine Sparkle Medical Centre in Homa Bay, which received Sh2.8 million despite not existing; Hanano Nursing Home, paid over Sh4 million; and Sipili Maternity and Nursing Hospital, which was shut down three years ago after a TV exposé, yet allegedly received nearly Sh5 million.

They also raised alarm over the rapid expansion of accredited centres in the north-eastern region, where facilities increased from 153 to over 700 in less than a year.

Among the beneficiaries was Wante Nursing Home Ltd, incorporated in February 2025, approved the following day, and by April had already received Sh3.8 million despite lacking a physical location.

The legislators further linked Duale to a company contracted to manage SHA’s revenue collection system and accused Abdi of conflict of interest over his ties to Ladnan Hospital, which they said has received Sh66 million in questionable payments. They said these revelations show how deep the fraud has gone within the new system.

“When NHIF was scrapped, it had arrears of Sh32 billion. In just 10 months, SHA has accumulated Sh43 billion in unpaid claims. The total debt now stands at a staggering Sh5 billion,” they said, warning that the new scheme is already overwhelmed by corruption and debt.

The MPs accused the Ministry of dismantling transparency mechanisms after the government pulled down the public portal that showed monthly hospital payments and also removed access to the Kenya Master Health Facility Registry. This, they said, was part of efforts to conceal the scale of fraud.

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Even as the MPs mounted pressure, SHA announced the suspension of 45 facilities accused of fraud, bringing the total number of suspended hospitals to 85.

Duale also revealed that Sh3 billion in claims are being re-evaluated over missing documents, while Sh2.1 billion remains under investigation.

He added that Sh10.6 billion in claims had been rejected due to irregular billing practices, falsification of records, and claims for non-existent patients.

Despite these actions, the lawmakers insisted that the top leadership of the Ministry and SHA must take political responsibility.

“We want to tell the Head of State and his friend, CS Duale, that Kenyans have now unearthed the scam you carefully schemed to impose on the public. Both the National Assembly and Senate Health Committees are already probing this matter, and when Parliament resumes from recess, we will push for the formation of a Commission of Inquiry to establish how much money has been looted under these schemes,” they said