President Ruto vows to crack down on SHA fraud as 1,000 health facilities shut
Speaking at State House on Wednesday, Ruto revealed that nearly 1,000 health facilities have been closed for fraudulent activity and pledged that all misappropriation of public funds would be punished.
Despite mounting criticism over alleged fraud and ghost health facilities, President William Ruto has vowed to ensure the Social Health Authority (SHA) functions effectively, insisting that refunds from illegitimate payments will be recovered and culprits prosecuted.
Speaking at the State House on Wednesday, Ruto revealed that nearly 1,000 health facilities have already been closed for fraudulent activity. He pledged that no misappropriation of public funds would go unpunished.
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“I want to promise the people of Kenya, we have already closed close to 1,000 health facilities. We are not going to stop at closing the facilities. We are also going to make sure they refund the money if ever they have been paid. And we are going to prosecute them, because it is criminal to steal money meant for patients. It is criminal to steal public resources using whatever means. So watch this space. SHA is going to work because we are going to eliminate fraud,” he said.
The President emphasised that SHA’s digitisation is helping the government detect fraudulent claims, ghost hospitals, and fake patients attempting to defraud the health sector.
Digitisation of SHA
“We will make sure the digital system, the digitisation process of SHA, is what is making us detect all the fraudulent claims, all the ghost hospitals and all the fake patients attempting to carry out fraud in our health sector,” he said.
Ruto, who had met Kiambu County grassroots leaders, also highlighted the government’s broader development agenda, noting progress in healthcare, education, agriculture, infrastructure, and employment. He said the government had made a firm commitment to transform Kenya and that the promise was becoming a reality.
“We made a solemn commitment to the people of Kenya to transform our nation. We are proud to report that this promise is no longer a dream; it is unfolding before our eyes. Healthcare is no longer a privilege for the few who can afford it, but a right for every Kenyan. We are digitising our health system to seal the loopholes that crippled the defunct NHIF, ensuring that the new Social Health Authority delivers on its mandate. SHA must work, and it will work,” he said.
The President also shared achievements in Kiambu County, including 30 modern markets worth Sh4.5 billion, 15,000 housing units valued at Sh30 billion, a 10,000-seater stadium in Thika, and major road projects such as the dualing of Muthaiga-Ndumberi Road (Sh22 billion), the Northern Bypass (Sh20 billion), and the completion of the 240km Mau Mau roads.
Despite Ruto defending SHA, members of the Kenya Moja political movement have demanded the immediate resignation of Health Cabinet Secretary Aden Duale and SHA CEO Mercy Mwangangi, accusing them of presiding over a “well-calculated scandal.”
“SHA is a well-calculated scandal. There are facilities that were closed, and they continue receiving money from SHA. For example, Sipili Maternity and Nursing Home, which was shut down following a TV exposé, has received five million shillings,” the leaders said during a Nairobi press briefing on Wednesday.
NHIF system
They further alleged that corruption is being facilitated through the defunct National Health Insurance Fund (NHIF) system, now under SHA, calling it a betrayal of public trust.
“They are actually using the NHIF system. Enough is enough. We demand the immediate resignation of Aden Duale for conflict of interest, and the CEO of SHA for colluding to steal from Kenyans,” another member said.
The group accused CS Duale of “talking tough” on corruption while being conflicted in the ongoing scandal, insisting that accountability must be enforced at the highest levels of government.
Public outrage has intensified over persistent fraud in the government healthcare scheme, with questions raised over SHA’s claims payments to hospitals, high bills to smaller facilities, and potential ghost facilities.
On Monday, the government disabled the public portal that allowed monitoring of monthly hospital payments and the Kenya Master Health Facility Registry (KMHFR), sparking further criticism.
A total of 45 health facilities have also been shut down for defrauding the system, bringing the total to 85 after 40 were flagged earlier this month. The suspensions followed Duale’s disclosure that claims worth Sh3 billion were under re-evaluation for missing documents, while an additional Sh2.1 billion remained under investigation.
Duale also revealed that his ministry had rejected Sh10.6 billion in claims, citing fraudulent practices including upcoding, falsification of medical records, converting outpatient cases into inpatient admissions, and billing for non-existent patients.
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