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Over 1,000 health facilities shut over SHA fraud as Ruto orders tougher crackdown

National

Author: Grace Githinji

July 3, 2025

2 min.read

More than 1,000 medical facilities across Kenya have been shut down for defrauding the Social Health Authority (SHA), in a major government crackdown aimed at safeguarding public health funds. The closures follow a directive by President William Ruto, who condemned the abuse of the health scheme and warned of even tougher measures against non-compliant institutions.

Speaking during his recent visit to London, President Ruto stated, “The criminal elements that are staining SHA will not succeed. We have tracked and closed over 1,000 medical facilities engaging in fraud… More are on the way. Our health programme must remain efficient and incorruptible.” He revealed that over 4.9 million Kenyans had already benefited from SHA since its launch in October 2024, outperforming the previous system under NHIF.

The Ministry of Health confirmed that at least 35 hospitals were closed for presenting fake accreditation documents, inflating billing claims, and manipulating patient data. In one example, a facility with only 14 beds claimed to have 100, triggering an audit that exposed large-scale deception. Health officials flagged widespread cases of outpatient claims being converted to inpatient admissions to inflate reimbursements illegally.

The closures span multiple counties, including Nairobi, Kisumu, Bungoma, Kajiado, Busia, Mandera, Kilifi, and Wajir. Alongside hospitals, several pharmacies and diagnostic centers were also affected. Officials say additional investigations are ongoing, and those found culpable will be prosecuted.

Health Cabinet Secretary Aden Duale said the government is moving swiftly to introduce a stricter regulatory framework to prevent further misuse. “We cannot allow public funds to be looted under the guise of healthcare. The crackdown is necessary to restore integrity in the system,” he said. The Ministry is currently collaborating with law enforcement agencies to compile evidence for legal action.

SHA, launched to offer affordable and inclusive healthcare, provides Kenyans with access to outpatient services, diagnostics, maternal care, and chronic illness support. According to government data, more than 4.9 million people have accessed services under the new scheme, a sharp increase from the figures recorded under NHIF.

While the crackdown has been welcomed by civil society and many Kenyans, healthcare experts have urged the government to balance enforcement with support for compliant facilities, particularly in remote areas. They warn that sudden closures could disrupt access for vulnerable communities.

To strengthen the reform agenda, the Ministry of Health is planning to roll out real-time digital billing systems, random audits, and anonymous whistleblower reporting channels. Legal amendments are also in the pipeline to impose tougher penalties for health sector fraud.

President Ruto emphasized that the government is determined to protect the SHA fund from abuse. “This is not just about facilities, it’s about trust, lives, and the dignity of our citizens,” he said.

As the investigations continue, the government has encouraged Kenyans to report any suspected cases of SHA fraud by dialing *147#. Authorities have reiterated that those abusing the system will be prosecuted, and legitimate facilities will receive continued support to ensure quality healthcare delivery.

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Grace Githinji