Ministry of Health cracks down on pharmacy cartels linked to false claims
By Kiprono Keileb, January 27, 2026The Ministry of Health has moved to strengthen oversight in public hospitals by targeting pharmacy cartels that were linked to diverting patients to private outlets instead of providing free medicines. The initiative relies on a new digital system designed to track patient treatment and medicine issuance in real time.
In a statement shared on X on Tuesday, January 27, 2026, the Ministry of Health, in collaboration with government agencies, clarified how the system works and how it will improve accountability.
“Clarifying the relationship between SHA Kenya and Digital Health Agency Kenya: Both are Government agencies working hand in hand to transform healthcare delivery. DHA owns and manages the digital health platform, while SHA has independent, secure access to the system to process and manage claims from health facilities,” the Ministry said.
Officials explained that the partnership between SHA and DHA is intended to make healthcare delivery more efficient, transparent, and accountable to the public.
“This collaboration ensures seamless service delivery, stronger accountability, and a more efficient healthcare system for all Kenyans. Together, we are streamlining healthcare for a better Kenya,” the Ministry added.
A key feature of the system is the real-time monitoring of medicine distribution, which directly links issuance of drugs at hospitals to the approval of claims. Hospitals failing to provide prescribed medicines risk having their SHA claims rejected.
“Through the Digital Health Agency (DHA), the Ministry has deployed a real-time system that tracks patient treatment and medicine issuance. Any hospital that fails to issue prescribed medicines at the facility will have its SHA claims rejected,” the Ministry said.
The Ministry noted that the system effectively ends the practice where patients were being sent to private pharmacies, removing opportunities for manipulation while protecting patients’ rights.
“This decisively ends the pharmacy cartel where patients were diverted to private outlets instead of receiving free medicines at public facilities. The system leaves no room for manipulation. Transparency, accountability, and patient protection win,” the Ministry concluded.
The ministry said the new digital platform marks an important step in modernising Kenya’s healthcare sector, strengthening public trust, and ensuring that medical services reach the intended beneficiaries.