The Ministry of Health has so far closed 1,118 healthcare facilities across the country that were found to have defrauded public funds through the Social Health Authority (SHA) system.

This follows revelations that Ksh11B was siphoned through SHA between October 2024 and April 2025, involving fake claims, unprocedural surgeries, ghost patients, and collusion.

Addressing MPs in Naivasha during the ongoing 2026 Legislative Retreat on Tuesday, January 28, 2026, Health Cabinet Secretary Aden Duale said the government had instituted measures to prosecute all those involved in the fraud while ensuring the lost funds are recouped over time.

“The government will not relent in closing any more facilities found engaging in fraud,” said Duale.

SHA registration and contributions

Duale noted that so far, 29 million Kenyans had registered under SHA, with over Ksh130B collected and Ksh93.3B disbursed to healthcare facilities for services offered.

He raised concerns over fraud in some facilities that have lodged unusually high claims for Caesarean Section deliveries compared to normal deliveries.

“We have taken note of a section of facilities that spiked their claims up to 97 percent of C-section deliveries due to more monetary benefits as opposed to normal deliveries,” he said.

To encourage contributions by low-income members, the CS highlighted the introduction of SHA Lipa Polepole, which has enrolled 412,011 active contributors, generating over Ksh1.4B.

Additionally, more than 558,000 vulnerable households have been supported by the national government, with 63,461 households receiving support from the NG-CDF.

Duale also announced the establishment of 36 facilities overseas to cater for medical evacuation, with funding capped at Ksh500K.

“We are also seeking Ksh5.9B budgetary support for Primary Health Care facilities, which will be used to offset unpaid dues owed to facilities for the last three months,” he added.

MPs raise concerns

Gilgil MP Martha Wangari expressed concern over facilities taking advantage of C-section deliveries, projected to hit 30 percent by the year 2030.

She called on the ministry to only consider claims for complicated deliveries and welcomed the introduction of a code of conduct that holds health officials liable in cases of neglect leading to patient deaths.

Nyeri MP Duncan Mathenge called for more allocations to cater for cancer, mental health, and rehabilitation care, noting that current funding is inadequate.

South Mugirango MP Silvanus Osoro urged the speedy prosecution of personnel involved in defrauding SHA funds through fictitious claims.

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