The Ministry of Health has shut down 1,118 healthcare facilities across the country after uncovering widespread fraud involving the Social Health Authority (SHA) system, Health Cabinet Secretary Aden Duale has said.
Speaking during the 2026 Legislative Retreat in Naivasha, Nakuru County, Duale told Members of Parliament that the facilities were implicated in the loss of about Sh11 billion siphoned from the SHA system between October 2024 and April 2025.
According to the CS, the fraud involved fake claims, unprocedural surgeries, ghost patients and collusion between healthcare providers and individuals exploiting loopholes in the system.
Duale said that despite significant efforts to streamline the SHA and tighten controls, some rogue facilities continued to engage in corrupt practices, prompting the government to take decisive action.
“We have made notable gains in the fight against corruption in the SHA system. Initially, claims were exceeding revenue, but that has now changed due to strengthened oversight and enforcement,” Duale said.
The Health Cabinet Secretary also raised concerns over a growing trend of fraud involving exaggerated claims for deliveries conducted through Caesarean Section, noting that some facilities were abusing the procedure to inflate reimbursements.
On enrolment under the Social Health Authority, Duale said 29 million Kenyans have so far been registered, with more than Sh130 billion collected and Sh93.3 billion disbursed to healthcare facilities for services rendered.
He further highlighted progress under the Lipa SHA Polepole initiative introduced in 2025, saying the programme has enrolled 412,011 active members, who have collectively contributed Sh1.4 billion.
Duale maintained that the ministry will continue strengthening surveillance, audits and accountability mechanisms to protect public funds and ensure that healthcare resources benefit deserving patients.
He urged Parliament to support ongoing reforms, saying restoring public confidence in the SHA system remains a top priority for the government.
