Willis Otieno: Ksh40M for patient care at Homa Bay hospital has vanished
Lawyer Willis Otieno has said that over Ksh40 million meant for patient care at Kandiege Sub-County Hospital in Homa Bay has vanished.
Otieno claims that in June, the Social Health Authority (SHA) wired Ksh54,370,000 to the hospital’s Special Purpose Account at KCB, but only Ksh14,000,000 was used for patients.
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Taking it to X on Friday, August 15, 2025, Otieno challenged authorities to account for the missing funds. “If Kandiege Hospital did not receive Ksh54 million, let them come and ask me. Over Ksh40 million has disappeared,” he said.
SHA under scrutiny over hospital funding
The Social Health Authority, which took over from the National Hospital Insurance Fund (NHIF) in October 2024, has been disbursing billions to hospitals nationwide as part of its Universal Health Coverage agenda.
SHA has faced mounting criticism over accountability, with the Senate recently flagging more than Ksh8 billion in pending hospital claims. The Ministry of Health also suspended 40 health facilities this month over fraudulent billing practices linked to SHA payouts.
“The Social Health Authority has suspended forty health facilities found to have engaged in criminal activities. They have engaged in corruption and theft of public resources. This suspension is effective immediately,” Health Cabinet Secretary Duale said on August 8, 2025.
Similarly, Duale revealed that for accountability and transparency purposes, the Ministry of Health had published the forty health facilities in the Kenya Gazette.
“In the interest of transparency and public accountability, a full list of these suspended facilities has been duly published in the Kenya Gazette number 168,” Daule said.
In addition, Duale stated that during the investigations, the facilities shall not receive any capitation from the Social Health Fund, further adding that the facilities will be expected to return the money taken during the fraudulent Scheme.
Otieno’s revelations have added to the pressure on the authority, with questions being raised over how large sums of public health funds are monitored once disbursed to hospitals.
Otieno’s remarks have intensified debate over financial transparency in Kenya’s health sector, especially regarding how hospital allocations are managed at the facility level. The claims about Kandiege Sub-County Hospital add to ongoing concerns about the SHA’s ability to ensure funds reach patient care as intended.
