Kenyans React as Govt Shuts Down 35 Hospitals Over SHA Fraud: "NHIF Problems?"

Kenyans React as Govt Shuts Down 35 Hospitals Over SHA Fraud: "NHIF Problems?"

  • Health Cabinet Secretary (CS) Aden Duale revoked the operational licences of 35 private health facilities in June 2025
  • The CS noted that the hospitals, healthcare workers and some patients colluded to defraud the Social Health Authority (SHA) of billions of shillings
  • Duale's announcements and remarks sparked debate among Kenyans who questioned the viability of the new health scheme

Wycliffe Musalia has over six years of experience in financial, business, technology, climate, and health reporting, providing deep insights into Kenyan and global economic trends. He currently works as a business editor at TUKO.co.ke.

The government's move to shut down 35 private health facilities over Social Health Authority (SHA) fraud has aroused debate among Kenyans.

CS Aden Duale said the SHA fraud is perpetrated by some hospitals, healthcare workers, and patients.
Health Cabinet Secretary (CS) Aden Duale speaking at a past event. Photo: Aden Duale.
Source: Twitter

Health Cabinet Secretary (CS) Aden Duale raised a red flag over illegal activities conducted in these hospitals, which have defrauded the SHA fund of billions of shillings.

What Duale said about SHA fraud

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Duale cited cases where health facilities give wrong information about SHA claims, with some faking the number of patients receiving the services.

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He said the fraudulent activities are carried out by the hospitals in collaboration with some healthcare workers and patients.

The CS warned Kenyans participating in the activities that they risk facing the full force of the law.

What Kenyans said about SHA fraud

The announcement saw Kenyans take to social media, sharing mixed reactions over the questionable activities at the new medical scheme.

Others questioned why SHA, which transitioned from the defunct National Health Insurance Fund (NHIF), is facing fraud in less than a year.

@smutoro said:

"If the SHA technology didn’t limit the discretion of doctors and hospitals- on admissions and misuse of ghost and real patient codes — then we are back to square one."

@mainman_maina questioned:

"I thought you procured a system for KSh 106 billion to stop fraud that had infiltrated our health care system with NHIF. Now you are still whining about the same issues that made you use KSh 106 billion of taxpayers' money."

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@mwoha_ke wondered:

"I thought you closed NHIF due to fraud...treating a mosquito bite with a hammer"

@Fantasy_Genius2 asked:

"The Scandal that will brew from SHA will make history. Meanwhile pesa ilibaki NHIF ilipewa nani?"

@lastbone asked:

"Didn't we abandon NHIF and buy SHA for over a billion with the promise that it will stop exactly this?"

@hilruttoh noted:

"The same ills that we were told would be a thing of the past with the phasing out of NHIF? The problem, it appears, isn't the system, and such transitions can't resolve them."

@sheriff_jjk asked:

"So Aden Duale made it clear that so many Hospitals are fraudulently billing patients to get more profit or what ????"

@KenKibera2 claimed:

"This is how NHIF used to move, and that's why private hospitals were fighting SHA."

@Dankos20Brown wrote:

"Changing the name from NHIF to SHA didn't change the immorality in our entire Nation nor the employees. The SHA program smirks of a scandal Never known before in this country."

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@leongetich said:

"You mean NHIF problems are starting to show with SHA? Or maybe we should have just made NHIF better before spending KSh 104 billion."

Government shuts down SHA non-compliant hospitals

Earlier, the government shut down over 700 health facilities that were not compliant with SHA guidelines.

CS Duale accused the hospitals of derailing the full implementation of universal health coverage.

He also downgraded 301 facilities through a joint effort by the Kenya Medical Practitioners and Dentists Council (KMPDC), the Digital Health Agency (DHA) and SHA.

Source: TUKO.co.ke

Authors:
Wycliffe Musalia avatar

Wycliffe Musalia (Business Editor) Wycliffe Musalia is a Business Editor at TUKO.co.ke, with over six years of experience in digital media. He holds a Bachelor of Arts in Linguistics, Media and Communication from Moi University. Before joining TUKO.co.ke, Musalia worked as an editorial intern at Standard Media Group. Musalia has completed the full Google News Initiative (GNI) News Lab Advance digital reporting workshop. He has also undergone Procurement Fraud and Public Finance Management Training conducted by the Kenya Editors’ Guild. You can get in touch with Musalia via mail: wycliffe.musalia@tuko.co.ke.

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