Govt suspends 45 health facilities from SHA
By Faith Lagat, August 26, 2025The Ministry of Health has suspended 45 health facilities across the country in a sweeping crackdown on fraud within the Social Health Insurance scheme.
The decision, announced by the Social Health Authority (SHA) in a special Kenya Gazette notice (Vol. CXXVII—No. 180), takes immediate effect under Section 48(6) of the Social Health Insurance Act, 2023.
The suspensions, signed by SHA Chief Executive Officer Mercy Mwangangi, affect facilities in counties including Mandera, Kisumu, Homa Bay, and Nairobi.
Among those listed are Aasif Medical and Health Service Limited in Mandera, Equity Afia-Homa Bay in Homa Bay, and Novic Medical Centre in Nairobi.
Mwangangi stressed that the facilities will not benefit from SHA reimbursements during their suspension period, noting that the move builds on earlier action taken on August 8 when 40 facilities were suspended.
Escalating crackdown
The ministry’s decision comes amid mounting public concerns over widespread fraud and ghost hospitals allegedly syphoning funds meant for healthcare delivery. The suspensions are the strongest signal yet of the government’s intent to clean up the sector and restore accountability.
“In accordance with the provisions of the Social Health Insurance Act, the health facilities set out in the Schedule shall not be entitled to any benefit from the Social Health Authority during the period of their suspension,” Mwangangi stated.
The crackdown reflects the government’s intensified oversight following weeks of public outrage. Allegations of financial mismanagement within SHA have drawn criticism from civil society, health workers, and political leaders who accuse authorities of dragging their feet in addressing corruption.
Maraga demands audit
Former Chief Justice David Maraga joined calls for accountability, urging a forensic audit into SHA’s operations. In a statement on X, Maraga decried “deep-seated corruption that has deprived Kenyans of critical health services” and warned that betrayal by public officers would no longer be tolerated.
“Every Kenyan has the right to know how their money is spent and who is accountable when it is stolen,” he said, insisting that those found guilty of colluding to defraud the system must face prosecution.
Govt vows reforms
Health Cabinet Secretary Aden Duale, responding to concerns a day earlier, dismissed claims that payments were still being made to closed facilities. He clarified that many of the hospitals flagged on social media had either been shut down in May, suspended, or downgraded.
“No amount of propaganda or blackmail will deter us from fixing our healthcare system,” Duale affirmed, pledging comprehensive reforms to safeguard public funds.
The latest suspensions underscore a turning point in Kenya’s healthcare reforms as the government moves to balance strict enforcement with the urgent need to rebuild public trust in the Social Health Insurance scheme.