Health Cabinet Secretary Aden Duale has closed down 35 hospitals following revelations of large-scale fraud in the government’s new Social Health Authority (SHA) scheme. The crackdown aims to protect taxpayer funds and restore integrity in Kenya’s universal healthcare rollout.
Highlights
- 35 hospitals shut for fraudulent SHA claims and misuse of patient data.
- Health CS Duale says facilities billed for ghost patients and inflated services.
- Files forwarded to DCI for criminal investigations.
- Over 700 ghost and unlicensed facilities have been closed in total.
- Government rolling out digital tracking to curb future abuses.
Main Story
During a public address in Kisumu, CS Aden Duale confirmed that 35 private hospitals had been shut down after being found guilty of defrauding the Social Health Authority (SHA). The facilities reportedly engaged in unethical practices like admitting non-existent patients, inflating hospital beds, and making duplicate claims—all at the expense of public funds.
Duale described the actions as not only corrupt but criminal, revealing that some facilities even charged patients directly while claiming reimbursements from SHA for the same services.

The files of all implicated facilities have been handed over to the Directorate of Criminal Investigations (DCI), with Duale warning that arrests and prosecutions will follow. “Fraud against SHA is not just unethical—it is theft from the public,” he stated.
This is part of a broader cleanup of Kenya’s health sector. Over 728 ghost or unlicensed clinics have already been shut down across the country, with an additional 301 downgraded for non-compliance. The ministry is working to digitize patient records and tighten surveillance on service providers.
Duale urged Kenyans to report suspicious billing or malpractice via SHA’s call centre (147), adding that reforms are being implemented to protect both patients and the public purse.
As Kenya’s healthcare system transitions into the SHA era, Duale’s firm hand signals a new chapter—one where integrity is just as vital as access.