The Ministry of Health and the Social Health Authority (SHA) has taken unprecedented action against dozens of hospitals accused of defrauding public health funds.
A recent audit uncovered a staggering Sh20 billion in potential losses, with nearly 40% of the nation’s hospitals implicated in fraudulent activities. Following investigations into 67 facilities, 27 hospitals were immediately suspended by the Ministry of Health for their alleged involvement in defrauding the National Hospital Insurance Fund (NHIF).
SHA CEO Mercy Mwangangi on August 26 gazetted the suspension of 45 additional facilities across 17 counties, including Equity Afia branches in Homa Bay and Mandera, and Novic Medical Centre in Nairobi.
She affirmed that these facilities “will not receive any benefits during the suspension period.” Mandera recorded the highest suspensions with nine facilities, followed by Homa Bay with five.
The twin suspensions by both the Ministry of Health and the SHA highlights the systemic scale of healthcare fraud in Kenya and signal a firm government stance against corruption in the sector.
Despite the disturbing reports, the audit also showed that 60% of facilities examined were operating transparently, offering a measure of reassurance.
The Ministry has since launched a recovery process to reclaim fraudulent claims and restore accountability within the healthcare system.
