SHA denies wiring Sh20 million to ghost hospital in Homa Bay, confirms payment to Nyandiwa Level 4

The Social Health Authority (SHA) has dismissed reports alleging that it wired nearly Sh20 million to a ghost hospital in Homa Bay, clarifying that the funds were lawfully paid to Nyandiwa Level 4 Hospital, a functioning public health facility in Suba South.

In a statement on Friday, SHA Chief Executive Officer Mercy Mwangangi described the reports as misleading and damaging, insisting that Nyandiwa has been serving the community for decades.

“Nyandiwa Level 4 Hospital, Gwassi, Suba South, Homa Bay County, has been operational since the 1970s. The facility was formerly Nyandiwa Dispensary and was subsequently upgraded to a Level 4 hospital,” she said.

Mwangangi explained that the hospital retained its original bank account name, “Nyandiwa Dispensary”, during the upgrade process, a standard practice observed in many public health facilities across the country.

“In line with standard practice, the hospital retained its existing bank account under the name ‘Nyandiwa Dispensary’ as it transitioned to Level 4. Many facilities across the country that began as dispensaries or sub-district hospitals maintain their original bank account names after upgrading,” she added.

The SHA boss said the Sh19,998,720 in question was not irregular but represented “legitimate and accumulated claims duly processed in line with SHA’s strict verification and payment protocols.”

She further revealed that the facility had received Sh751,504 under the Primary Health Care (PHC) fund and Sh82,080,706 under the Social Health Insurance Fund (SHIF) since October 2024.

“All payments have been acknowledged by the facility,” she said.

The controversy arose after a publication shared images of a deserted building with a closed gate and a cow grazing in the compound, claiming it was the Nyandiwa facility receiving state funds. Mwangangi dismissed this, clarifying that the abandoned structure was unrelated.

She noted that the abandoned structure shown in the media is one of the incomplete facilities built by the former County administration and had never been contracted by SHA, and has no transacting rights.

She added that the confusion may also have been fuelled by the existence of another Nyandiwa Dispensary in Kasipul constituency, which has never held an account with SHA or the now-defunct NHIF.

“These claims are false, misleading, and undermine basic principles of responsible journalism such as accuracy, fairness and balance,” Mwangangi said.

She urged media houses to fact-check before publishing, noting that “a simple verification with SHA or the Homa Bay County Department of Health would have clarified the distinction between Nyandiwa Level 4 Hospital (an operational facility with active claims), and the uncommissioned structure visited by journalists.”

SHA maintained that all facility payments are transparent, published on its website after each disbursement, and not tied to single-month claims since adjudication and verification are continuous.

The payouts, Mwangangi explained, also cover multiple service packages ranging from maternity, inpatient and outpatient services to dialysis, oncology, rehabilitation and surgical care.

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• SHA denies wiring Sh20 million to ghost hospital in Homa Bay
• confirms payment to Nyandiwa Level 4

“SHA does not and will never disburse funds to non-existent or uncontracted facilities. Every payment is subject to rigorous verification to safeguard public funds and strengthen health service delivery,” she said.

She called on the media to uphold accuracy in reporting health sector matters.

“The public deserves accurate information, particularly on matters concerning health financing reforms that are central to advancing universal health coverage in Kenya,” she said.