40 Health Facilities Suspended Over Alleged Misuse of SHA Funds

The Kenyan government has suspended 40 health facilities after uncovering a major fraud within the new Social Health Authority (SHA) system.

Health Cabinet Secretary Aden Duale made the announcement on Friday, saying these facilities had been caught defrauding the government’s new health program. According to the CS, the clinics were making fake claims and trying to steal money meant for real patients.

“These suspensions take effect immediately,” Duale said at a press briefing. “We are not going to allow people to play with public funds. Anyone found cheating the SHA will face the law.”

CS Aden Duale: We have suspended 40 health facilities found to be defrauding SHA. These suspensions take effect immediately. During the investigation period, these facilities will not receive any benefits from SHA, and we will surcharge them for the money lost. We have also… pic.twitter.com/9I4Ep9gs02

— Citizen TV Kenya (@citizentvkenya) August 8, 2025

Some of the clinics involved are well known. In Nairobi alone, the list includes ABM Specialised Hospital, St. Johns Hospital, Selacare Health Services, Bristol Park Hospital in Fedha, and Dolma Medical Centre. The rest are spread out in other counties.

But this crackdown is not just about hospitals. The CS also named 12 health workers who were part of the scam. Their data has been removed from the SHA system while investigations continue. Duale said these individuals will be handed over to the DCI, and their licenses could be canceled.

This strong response shows that the government is under pressure to protect the SHA. The system is still new, launched to replace the National Health Insurance Fund (NHIF), and is meant to help Kenyans get better, more affordable healthcare. But scandals like this risk damaging public trust before the system even settles.

President William Ruto has also stepped in. Speaking during a high-level event at State House on August 7, the President warned all fraudsters that they are being watched. “If you are trying to game the system, beware,” Ruto said. “You are already on our radar.”

Featured image via Screengrab