NAIROBI, Kenya — Health Cabinet Secretary Aden Duale has announced the closure of 12 hospitals flagged for alleged fraud under the Social Health Authority (SHA), as the government intensifies a nationwide crackdown on suspicious medical claims.
Speaking in Garissa, Duale said the facilities were shut from March 30 following forensic audits conducted by the Social Health Authority that uncovered what he described as “systemic and serious fraud” involving both private and public institutions.
“As the government and the Social Health Authority, through the Bima Ya Kitaifa framework, we have taken the decisive step of closing twelve hospitals effective March 30.
These are hospitals… flagged for their involvement in systemic and serious fraud,” Duale said.
The CS identified Homa Bay, Bungoma, Mandera, Wajir, and Kisii counties among key hotspots, noting that private facilities in those areas were particularly implicated.
He said the crackdown includes Bungoma West Hospital and Calvary Hope Medical Centre in Bungoma, Kerugoya Medical Centre in Kirinyaga, and several facilities across Homa Bay, Mombasa, and Nairobi.
Among the institutions cited were Baypharm Medical Centre in Homa Bay, Dawida Annex Hospital Ltd in Taita Taveta, Kerugoya Medical Centre in Kirinyaga, Raycos Health Centre in Mombasa, Calvary Hope Medical Centre and Shamberere Dispensary in Kakamega, Kurafa Medical Centre in Kiambu, and Umoja Three Medical Centre in Nairobi.
Duale said the investigation is broader, with more than 1,000 facilities already closed over compliance issues and hundreds under scrutiny for suspected illegal claims.
He added that 18 facilities are currently facing court proceedings linked to the alleged fraud.
According to the ministry, 24 facilities are undergoing forensic audits by special SHA investigators, while the Directorate of Criminal Investigations is probing 250 facilities.
The Office of the Director of Public Prosecutions has received 30 case files for possible prosecution.
Separately, Bungoma West Hospital was suspended for 90 days on April 3 over suspected fraudulent claims, including alleged fictitious billing.
SHA Chief Executive Officer Mercy Mwangangi directed the facility to stop admitting SHA beneficiaries, processing claims, or receiving payments during the suspension period.
“Your facility shall not admit SHA beneficiaries, process notifications, request pre-authorisations, submit claims, or receive payments… SHA is not liable for services rendered during this stoppage without express approval,” read part of the suspension notice.
Mwangangi also ordered the hospital to transfer existing SHA patients to nearby contracted facilities, notify beneficiaries of the suspension, and cooperate with investigators.
Duale said the ministry would continue tightening oversight to safeguard public healthcare funds.
“We will remain steadfast in protecting the public resources intended for your healthcare… every shilling meant for treatment is guarded against corruption,” he said.
