SHA clears air on Nyandiwa hospital, rubbishes Ksh20M ghost facility claims
By Cynthia Lodite, August 22, 2025The Social Health Authority (SHA) has strongly refuted recent media reports alleging that the Authority disbursed Ksh20 million to a ghost facility, terming the claims as false, misleading, and irresponsible.
In a press release on Friday, August 22, 2025, by the SHA Chief Executive Officer, Dr. Mercy Mwangangi, SHA clarified that no such disbursement was made, and the report lacks a factual basis, hence misleading the public.
“The Social Health Authority (SHA) has noted with concern a misleading article published on August 22, 2025, alleging that SHA disbursed KShs. 20 million to a ghost facility. These claims are false, misleading, and undermine basic principles of responsible journalism such as accuracy, fairness, and balance,” SHA.
While urging media outlets to verify facts before publishing, the SHA CEO reiterated SHA’s commitment to transparency and accountability in the administration of the healthcare fund.
The CEO has further outlined facts linked to the alleged Nyandiwa hospital, whereby, according to SHA, the hospital located in Homa Bay, which was previously a dispensary, was later upgraded to a level 4 hospital.
“Nyandiwa Level 4 Hospital, Gwassi, Suba South, Homa Bay County, has been operational since the 1970s. The facility was formerly Nyandiwa Dispensary and was subsequently upgraded to a Level 4 hospital,” SHA noted.
Similarly, according to Dr. Mercy Mwangangi, in line with standard practice, the hospital retained its existing bank account under the name “Nyandiwa Dispensary” as it transitioned to Level 4. Further adding that many facilities across the country that began as dispensaries or sub-district hospitals maintain their original bank account names after upgrading.
“In line with standard practice, the hospital retained its existing bank account under the name “Nyandiwa Dispensary” as it transitioned to Level 4. Many facilities across the country that began as dispensaries or sub-district hospitals maintain their original bank account names after upgrading. The disbursement of KShs.19,998,720 represents legitimate and accumulated claims duly processed in line with SHA’s strict verification and payment protocols,” the SHA boss clarified.
Facts on funds disbursed to Nyandiwa Hospital
She further clarified that the disbursement of Ksh19,998,720 represents legitimate and accumulated claims duly processed in line with SHA’s strict verification and payment protocols.
Also adding that to date, the facility has received Ksh751,504 under Primary Health Care (PHC) and Ksh82,080,706 under the Social Health Insurance Fund (SHIF), all acknowledged by the facility. These are accumulated payments from October 2024.
On her part, the abandoned structure shown in the media is one of the incomplete facilities built by a former county administration, while also clarifying that it has never been contracted by SHA and has no transacting rights.
In addition, the CEO has noted that the public can access all payments made to facilities on the SHA website, which are posted after each disbursement, also adding that they are not representative of one month’s claims, since the adjudication and verification process is continuous and happens at different stages.
Likewise, she revealed that the payouts also represent different benefit packages such as inpatient, outpatient, surgical, maternity, dialysis, mental wellness and rehabilitation, medical imaging, and hematology/oncology services, and therefore, a simple eyeball comparison between one facility and another would lead to inaccurate deductions.
According to SHA, all payments under the Primary Health Care Fund (PHCF) have already been disbursed, while more payments for various packages are expected to be disbursed on Friday, August 22, 2025, and the following week.
She further clarified that SHA does not and will not 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.
“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.