Willis Otieno blasts MPs over SHA ghost hospitals scandal
Lawyer and political commentator Willis Otieno has criticised Members of Parliament over the deepening scandal at the Social Health Authority (SHA). He accused legislators of ignoring early warnings from Kenyans and instead choosing to protect those behind the scheme, creating room for massive fraud to flourish.
In a hard-hitting statement shared on his X account on Sunday, August 24, 2025, Otieno argued that the mismanagement now being exposed was predictable and preventable had leaders acted in the public’s interest.
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He noted that the current revelations of ghost hospitals, ghost patients, and unaccounted billions are only the beginning of what could turn out to be one of the country’s biggest corruption scandals.
“When Kenyans warned that SHA was a scam, you fools buried your heads so deep in Duale’s intestines you couldn’t smell the stench of theft. Now the rot is spilling out; ghost hospitals, ghost patients, ghost billions. We’re only scratching the surface,” Otieno stated.
He added that the revelations did not come as a shock, saying the government had turned corruption into a system.
“SHA doesn’t shock me. It breaks the heart, but it doesn’t surprise the mind. This government has made theft a system, not an accident. They sell Kenyans promises of reform, then convert them into pipelines of looting,” he said.
Otieno’s sentiments come as public outrage is growing over reports that billions of shillings meant for healthcare may have been siphoned off through fraudulent claims and fictitious facilities.
Deepening crisis at SHA
SHA, created to replace the troubled National Health Insurance Fund (NHIF), is now facing serious fraud claims after billions of shillings were disbursed to questionable facilities.
In March 2025, the authority paid out about Ksh11.4 billion to hospitals across the country. That payout quickly drew criticism when it emerged that some small private facilities had received unusually high amounts. Civil groups and the doctors’ union raised concerns that some of the facilities might not even exist or had exaggerated claims.
Through June and July, the Ministry of Health launched a major crackdown. Cabinet Secretary Aden Duale said investigators discovered falsified patient records, double claims and cases of forced admissions. He reported that some hospitals admitted ghost patients and inflated their bed capacities in order to pocket more money.
The government has since shut down or suspended dozens of facilities in different counties. On August 7, a Kenya Gazette notice listed 40 hospitals that were suspended from the SHA program after a month-long forensic audit. Authorities also blocked access for 12 clinicians and doctors who were linked to the questionable claims.
Investigators said some hospitals billed patients multiple times, while others disguised outpatients as inpatients to inflate charges. In one shocking case, a payout was tied to a site that turned out to be a thicket rather than a functioning hospital. The incident fueled growing concerns about ghost hospitals and ghost patients being used to siphon public funds.
SHA has denied some of the allegations. It dismissed reports that Ksh20 million had been disbursed to Nyandiwa Hospital, calling the claims false. However, the ongoing disputes have not eased public anger, as broader fraud patterns continue to surface.
Oversight bodies have also raised red flags. Earlier this year, the Auditor General questioned how the SHA digital platform was procured, warning that weak controls in contracting and technology left the system vulnerable. Civil society groups claimed the procurement process had bypassed competitive procedures, opening more loopholes for fraud.
The scandal has also drawn comparisons with the defunct NHIF, which was rocked by similar problems. A court ruling in May 2025 outlined years of fraud at NHIF, including ghost patients, kickbacks and unpaid claims that left hospitals struggling.
