SHA Sh11.4b payouts spark fears of corruption and ghost facilities

 

The Social Health Authority’s (SHA) payment of Sh11.4 billion to hospitals has sparked public outrage, with Kenyans demanding an audit, particularly for smaller private hospitals that received disproportionately high payouts.

Concerns have also been raised about a section of hospitals providing inpatient SHA services.

The uproar follows SHA’s decision to publicly release a list of all hospitals paid for services on its website, prompting transparency concerns and calls for further scrutiny.

Kenya Medical Practitioners, Pharmacists and Dentists Union (KMPDU) Deputy Secretary-General Dennis Miskellah said the Ministry of Health should conduct a hospital audit to prevent facilities from colluding with SHA employees, as was witnessed under the defunct National Hospital Insurance Fund (NHIF).

“We want to know where these hospitals are located because we have information that people registered imaginary hospitals, and they are being paid by SHA. We want an audit of that hospital list,” said Dr Miskellah.

In the list published last week, respective hospitals ranging from private, public, mission and faith-based facilities received their two-month pay from December 3, 2024 and February 3, 2025.

READ: RUPHA suspends SHA services over unpaid claims, reimbursement model

Counties leading in SHA payments include Nairobi, Uasin Gishu, Kisii, Kiambu, Kisumu, Homa Bay, Wajir, Meru, Nakuru, Mandera, Migori, Kirinyaga, Bungoma, Mombasa, Kericho, Kakamega and Nyeri.

Principal Secretary for Medical Services Harry Kimtai said the list was published in the interest of transparency. He assured that if any hospitals had received undue payments, they would be subjected to routine audits and forensic reviews to verify claims.

Inpatient services received the largest payments, as hospitals primarily admit patients under SHA services, according to Kimtai.

“If the public or oversight bodies feel that some hospitals are receiving more than they should, we will conduct further audits. We will follow up on any inconsistencies, track the exact number of patients served, and ensure accountability,” he said in an interview with The Standard.

PS Kimtai emphasised that SHA follows a structured process of auditing, reviewing, and paying hospitals.

To enhance oversight, the PS said SHA has digitised its tracking system. With digitisation, patient visits and hospital operations will be monitored in real-time, using phone numbers used from registration.

“With digitisation, we can track when a patient was attended to, the doctor who treated them, and the services provided. This helps prevent fraudulent claims,” explained the PS.

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The system will also allow authorities to verify hospital operations, including the number of procedures performed and bed capacities.

KMPDU supports the publication of paid hospital reports to promote transparency.

“I support transparency. It is beneficial because, as a union representing healthcare workers, I also advocate for them. Some hospital owners do not pay their employees or suppliers claiming SHA has not paid them,” said Dr Miskellah.

Beyond publishing hospital names and payments, the union is demanding that SHA disclose the total amount collected from Kenyans, including deductions from salaried and non-salaried individuals, as well as payments made to shadowy vendors.

Dr Miskellah also urged SHA to publish detailed financial allocations for outpatient claims, inpatient services, and critical, chronic, and emergency care, which have been points of contention among Kenyans.