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Post Reply: President Ruto Intensifies Crackdown on SHA Fraud, Closes 1,000 Health Facilities

<blockquote><div class="quotetitle">Quote from <a class="profile-link highlight-moderator" href="https://lawguide.co.ke/understanding-law/legal-forum/profile/lawyer/">Lawyer</a> on August 28, 2025, 6:30 am</div><div id="pl-7736"  class="panel-layout" ><div id="pg-7736-0"  class="panel-grid panel-no-style" ><div id="pgc-7736-0-0"  class="panel-grid-cell"  data-weight="1" ><div id="panel-7736-0-0-0" class="so-panel widget widget_sow-editor panel-first-child panel-last-child" data-index="0" data-style="{&quot;background_image_attachment&quot;:false,&quot;background_display&quot;:&quot;tile&quot;,&quot;background_image_size&quot;:&quot;full&quot;,&quot;background_image_opacity&quot;:&quot;100&quot;,&quot;border_thickness&quot;:&quot;1px&quot;}" ><div
			
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	<p dir="ltr" data-pm-slice="1 1 []">In a decisive move to address widespread fraud within Kenya's healthcare system, President William Ruto has vowed to ensure the Social Health Authority (SHA) operates effectively, promising to recover misappropriated funds and prosecute those responsible. Speaking at State House on Wednesday, Ruto announced that nearly 1,000 health facilities implicated in fraudulent activities have been shut down, with further actions planned to hold culprits accountable.</p>
<p dir="ltr">Ruto emphasized the government's unwavering commitment to rooting out corruption, stating that facilities involved in misappropriating public funds will be required to refund any payments received. He described the theft of resources intended for patients as a criminal act, underscoring that legal consequences will follow. "We have already closed close to 1,000 health facilities. We will ensure they refund the money if paid, and we will prosecute them. Stealing money meant for patients is unacceptable, and SHA will work because we are eliminating fraud," he said.</p>
<p dir="ltr">The President credited SHA's digitization efforts for uncovering fraudulent claims, including ghost hospitals and fake patients. The digital system has enabled the government to detect irregularities that previously undermined the now-defunct National Health Insurance Fund (NHIF). "The digitization process of SHA is helping us identify fraudulent claims, ghost hospitals, and fake patients attempting to defraud our health sector," Ruto explained.</p>
<p dir="ltr">During his address to grassroots leaders from Kiambu County, Ruto highlighted broader progress in Kenya's development agenda, including advancements in healthcare, education, agriculture, infrastructure, and employment. He reiterated the government's commitment to transforming Kenya, with healthcare becoming a right for all citizens rather than a privilege for a few. "We are digitizing our health system to close loopholes that crippled NHIF, ensuring SHA delivers on its mandate. SHA must work, and it will," he affirmed.</p>
<p dir="ltr">Ruto outlined significant investments in Kiambu County, including 30 modern markets worth 4.5 billion shillings, 15,000 housing units valued at 30 billion shillings, a 10,000-seater stadium in Thika, and major road projects. These include the 22-billion-shilling Muthaiga-Ndumberi Road dualing, the 20-billion-shilling Northern Bypass, and the completion of the 240-kilometer Mau Mau roads.</p>
<p dir="ltr">Despite Ruto's assurances, the SHA has faced sharp criticism from the Kenya Moja political movement, which has demanded the immediate resignation of Health Cabinet Secretary Aden Duale and SHA CEO Mercy Mwangangi. The group alleges that SHA is riddled with corruption, pointing to facilities like Sipili Maternity and Nursing Home, which reportedly received 5 million shillings despite being shut down after a television exposé. They claim the defunct NHIF system, now integrated into SHA, is being exploited to facilitate fraud, describing it as a betrayal of public trust.</p>
<p dir="ltr">The movement accused Duale of a conflict of interest and criticized his tough rhetoric on corruption as inadequate, insisting that accountability must start at the highest levels of government. "They are using the NHIF system to steal from Kenyans. We demand the immediate resignation of Duale and the SHA CEO for colluding in this scandal," a member stated during a press briefing in Nairobi on Wednesday.</p>
<p dir="ltr">Public outrage over persistent fraud in the government's healthcare scheme has intensified, with concerns raised about SHA's payment processes, inflated bills to smaller facilities, and the existence of ghost facilities. On Monday, the government disabled a public portal that allowed monitoring of monthly hospital payments and the Kenya Master Health Facility Registry, further fueling criticism.</p>
<p dir="ltr">In addition to the 1,000 closures, 45 health facilities were recently shut down for defrauding the system, bringing the total to 85 after 40 were flagged earlier this month. Duale disclosed that claims worth 3 billion shillings are under re-evaluation due to missing documentation, while an additional 2.1 billion shillings remain under investigation. The ministry has also rejected 10.6 billion shillings in claims, citing fraudulent practices such as upcoding, falsifying medical records, converting outpatient cases into inpatient admissions, and billing for non-existent patients.</p>
<p dir="ltr">As the government intensifies its efforts to clean up the healthcare system, Ruto's administration faces mounting pressure to restore public trust and ensure that SHA fulfills its promise of accessible and equitable healthcare for all Kenyans.</p>
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