Ministry of Health Suspends 40 Hospitals Over SHA Fraud: "Not Entitled to Any Benefit"

• Forty hospitals have been barred from the Social Health Authority scheme as fraud investigations intensify
• Senior doctors and clinical officers are among those suspended for alleged involvement
• Government vowed to recover public funds and close loopholes in the health system

TUKO.co.ke journalist Harry Ivan Mboto has over three years of experience reporting on politics and current affairs in Kenya

A storm is brewing in Kenya’s health sector after the government suspended 40 hospitals from the Social Health Authority (SHA) programme over suspected large-scale fraud.

Health Cabinet Secretary Aden Duale announced the decision on Friday, saying the affected facilities are accused of engaging in corrupt practices that undermine public trust and waste taxpayers’ money.

According to Duale, the suspension will remain in force until each hospital fully complies with SHA regulations, and any benefits previously paid on fraudulent grounds will be clawed back.

The ministry will also impose surcharges to recover money already disbursed.

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Why were 40 hospitals suspended from SHA?

Alleged malpractice included charging patients multiple times for the same treatment and inflating costs by recording outpatients as inpatients.

The crackdown is not limited to institutions. Eight doctors from Nairobi, Bungoma, and Kilifi counties have been suspended for direct involvement in the schemes, alongside four clinical officers connected to facilities in Nairobi and Homa Bay.

Under clause 16, sub-clause 4.5 of the facility contract, the SHA has revoked their access to all authority and digital health platforms.

The Kenya Medical Practitioners, Pharmacists and Dentists' Union (KMPDU) has been formally notified to enforce the action.

The suspensions were formalised through a Gazette Notice dated August 8, issued under the Social Health Insurance Act, 2023.

SHA chief executive officer Mercy Mwangangi confirmed that the facilities named in the schedule have been suspended under Section 48(6) of the Act.

List of 40 hospitals suspended by SHA

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The affected hospitals are located across 12 counties, including Homa Bay, Nairobi, Bungoma, Kakamega, Vihiga, Busia, Kajiado, Wajir, Kisumu, Kilifi, Mandera, and Kirinyaga.

The Ministry said the list may grow as investigations continue.

Below is the list:

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How much has SHA paid to hospitals?

In a related development previously covered by TUKO.co.ke, SHA recorded major growth within its first 10 months, enrolling over 24 million members.

During this period, the authority facilitated treatment for 4.5 million Kenyans through the Primary Health Fund.

Hospitals providing these services received payments amounting to KSh 6.8 billion for claims settled over the 10 months.

An additional KSh 1.5 billion in claims remained under verification, with the Ministry of Health noting that the new scheme had made significant progress in expanding healthcare access nationwide.

Proofreading by Asher Omondi, copy editor at TUKO.co.ke.

Source: TUKO.co.ke