NAIROBI, Kenya – The Social Health Authority (SHA) has dismissed claims that it disbursed nearly Sh20 million to a ghost health facility, clarifying that the money was legitimately paid to Nyandiwa Level 4 Hospital in Homa Bay County.
SHA CEO Dr. Mercy Mwangangi said the hospital, located in Gwassi, Suba South, has been operational since the 1970s and was upgraded from a dispensary to a Level 4 hospital.
However, she explained, the hospital retained its old account name “Nyandiwa Dispensary,” which may have caused confusion.
“The disbursement of Sh19,998,720 represents legitimate and accumulated claims duly processed in line with SHA’s strict verification and payment protocols,” Dr. Mwangangi said in a statement.
The controversy arose after media reports suggested that funds were directed to an abandoned facility.
According to Mwangangi, the mix-up may have stemmed from the existence of another Nyandiwa Dispensary in Kasipul Constituency, which does not have an account with SHA and has never been contracted by the now-defunct NHIF.
“A simple verification with SHA or the Homa Bay County Department of Health would have clarified the distinction between Nyandiwa Level 4 Hospital—an operational facility with active claims—and the uncommissioned structure visited by journalists,” she said.
The SHA boss also dismissed widely circulated photos of a dilapidated building, stressing that the structure has never been contracted by the authority.
“SHA does not and will never disburse funds to non-existent or uncontracted facilities. Every payment is subject to rigorous verification to safeguard public funds and strengthen health service delivery,” she said.
Dr. Mwangangi urged media houses to exercise due diligence before publishing sensitive stories, noting that misinformation could erode public confidence in ongoing health financing reforms.
“The public deserves accurate information, particularly on matters concerning health reforms that are central to advancing universal health coverage in Kenya,” she said.
According to SHA records, Nyandiwa Level 4 Hospital has received Sh751,504 under the Primary Health Care Fund (PHC) and Sh82,080,706 under the Social Health Insurance Fund (SHIF) since October 2024, with all payments duly acknowledged by the facility.
She added that the payments cover multiple health packages, including inpatient, outpatient, surgical, maternity, dialysis, oncology, medical imaging, and mental health services.
