Willis Otieno questions SHA’s capacity to manage hospitals

Lawyer Willis Otieno has slammed Social Health Insurance (SHA) about the operational capacity of the Authority, questioning its ability to monitor and verify the legitimacy and functionality of healthcare facilities under its watch.
The lawyer who made his remarks on Monday, August 25, 2025, on his official X account cast out his doubt on the Authority while raising further concerns on whether registered hospitals are real, functional, and delivering services.
On his part, the renowned lawyer similarly questioned SHA’s ability to engage in regional audits, which help in verifying whether the hospitals receiving capitations are real.
“Does SHA have the field capacity, verification protocols, and regional audit teams needed to confirm whether registered hospitals are real, functional, and delivering services?” he wrote.
Meanwhile, his remarks come amid growing public scrutiny of SHA’s accountability and transparency, particularly in light of recent reports questioning allocations to health facilities.
Likewise, Otieno’s sentiments reflect wider concerns about whether SHA is adequately equipped to manage nationwide healthcare financing and ensure funds are directed to credible and operational institutions.

Notably, Otieno’s remarks come after the Social Health Authority (SHA) released a report that strongly refutes recent media claims alleging that the Authority disbursed Ksh20 million to a ghost facility, describing those 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.