Pressure on Ruto’s govt as lobby groups demand probe into SHA saga
By Faith Lagat, August 29, 2025The National Integrity Alliance (NIA), a coalition of anti-corruption organisations, has called for an immediate and independent probe into the growing fraud scandal at the Social Health Authority (SHA).
The coalition, which includes Transparency International Kenya, Inuka Kenya Ni Sisi!, the Kenya Human Rights Commission, and the Institute of Social Accountability, said billions of shillings meant to secure Kenyans’ access to healthcare were being siphoned through fraudulent claims, irregular procurement, and payments to ghost hospitals.
Billions lost in fraudulent claims
In its statement, NIA highlighted damning revelations of systemic abuse at SHA. According to the group, Ksh11.4 billion was disbursed to hospitals, with some smaller private facilities and ghost hospitals receiving disproportionately high payments.
The Auditor-General also flagged a Ksh104.8 billion investment in SHA’s digital system, procured through a Specially Permitted Procurement process. The report noted that the government does not own the system or its intellectual property rights, leaving public funds at risk.
“The Auditor-General revealed that a Ksh104.8 billion investment in the SHA system was improperly procured via a Specially Permitted Procurement, sidestepping competitive bidding. The government doesn’t even own the system or its intellectual property rights, which were retained by the private consortium, posing a significant risk to public funds,” read the statement.
Additionally, the Health Ministry is reported to have rejected Ksh10.6 billion in suspicious claims involving upcoding, falsified records, conversion of outpatient cases into inpatient admissions, and phantom billing.
“These investigations and disclosures show that SHA is in the grip of a deep scandal. Public funds meant for Universal Health Coverage are being looted without consequence,” the alliance said.
Pressure on health officials
NIA is demanding a thorough probe by the Ethics and Anti-Corruption Commission, alongside the suspension of Health Cabinet Secretary Aden Duale, Principal Secretary Dr Ouma Oluga, SHA Board Chair Dr Abdi Mohammed and SHA CEO Dr Mercy Mwangangi to allow for credible investigations.
” NIA demands that an independent and thorough investigation by the Ethics and Anti-Corruption Commission, the Ministry of health officials including Health Cabinet Secretary Aden Duale, Principal Secretary Dr Ouma Oluga SHA Board Chair Dr. Abdi Mohammed, and SHA CEO Dr. Mercy Mwangangi, must step aside to allow credible investigations. Should they be found culpable they must be charged and prosecuted also, Immediate arrest and prosecution of all individuals implicated in the SHA scandals, including those behind the fraudulent hospital claims and fraudulent ‘ghost hospital’ contracts.”
The group also called for the prosecution of all those implicated, the publication of beneficial owners of fraudulent facilities, and consistent reporting on the use of funds.
“Publication of the beneficial owners of the ghost hospitals and facilities that received fraudulent claims, The Ministry of Health and SHA to issue consistent, clear and verifiable updates on use of public funds, Transparent and regular public reporting by the Ministry of Health on the use of public funds, the status of claims, and rejected payments, and ongoing investigations, and recoveries by EACC and finally Strengthen procurement and accountability mechanisms within the health sector to prevent recurrence of such abuse,”
Political leaders have since joined the chorus. Kakamega Senator Boni Khalwale challenged President William Ruto to dismiss CS Duale and Dr Mohammed, accusing them of presiding over graft. Former Chief Justice David Maraga also urged the EACC to move swiftly, insisting Kenyans deserve transparency and accountability.
Government response
Speaking at State House on August 27,2025 President Ruto vowed that all individuals implicated in the SHA scandal would be arrested, prosecuted and surcharged. CS Duale, however, defended his ministry, pointing to ongoing suspensions of facilities and system safeguards as part of a cleanup exercise.
With NIA’s #RedCard campaign gaining traction, the scandal is shaping up as a major test for the government’s anti-corruption agenda and the future of healthcare reforms in Kenya.