In a bold move aimed at curbing widespread abuse of Kenya’s healthcare financing system, Health Cabinet Secretary Hon. Aden Duale has announced the immediate suspension of 40 medical facilities from participating in the Social Health Authority (SHA) scheme.
The drastic decision, officially gazetted on August 7, 2025, follows a sweeping audit and surveillance operation launched by the Ministry of Health. The investigation uncovered a trail of irregularities, including fraudulent claims, inflated medical bills, and coordinated collusion between health facilities and rogue actors to siphon public health funds.
“The Ministry will not tolerate theft and abuse of a system meant to protect the most vulnerable in our society,” CS Duale declared during a press briefing in Nairobi. “All affected facilities will remain suspended from the Social Health Insurance Act framework until investigations are completed and accountability enforced.”
The affected hospitals — spanning Nairobi, Homa Bay, Bungoma, Kakamega, Kisumu, Mandera, Wajir, and Kajiado among others — will not receive any reimbursements or SHA-related benefits during the suspension period. Facilities such as Rachuonyo County Hospital (Homa Bay), Salama Yard Medical Centre (Nairobi), Lifecare Hospitals Bungoma, ABM Specialized Hospital (Nairobi), and Zamzam Nursing Home Rhamu (Mandera) are among those listed.
The Kenya Gazette notice (Vol. CXXVII – No. 168) specifies the suspension under Section 48(6) of the Social Health Insurance Act, 2023. The directive is meant to protect taxpayer money and ensure services under the SHA are delivered transparently and ethically.
This development has sent shockwaves across the healthcare sector, with stakeholders calling for deeper reforms and digital oversight mechanisms to enhance integrity in claim processing. The Kenya Medical Practitioners and Dentists Council (KMPDC) is also expected to initiate parallel disciplinary hearings against culpable practitioners.
The Ministry has urged Kenyans to report any suspicious billing practices or misconduct to SHA hotlines as investigations intensify.
This marks one of the most aggressive crackdowns on health sector graft in recent years and is likely to spark wider reforms as Kenya transitions to a universal health coverage model under the new SHA framework.
