45 hospitals suspended by the Social Health Authority over fraud, spread across 18 counties.
The Social Health Authority (SHA) has suspended 45 health facilities across 18 counties, blocking them from accessing benefits under the national health insurance scheme.
Chief Executive Officer Mercy Mwangangi announced the suspension in a Gazette notice dated Tuesday, August 26.
“The facilities listed in the schedule shall not be entitled to any benefit from the Social Health Authority during the period of their suspension,” she stated.
The action follows revelations by Health CS Aden Duale, who said investigations had exposed widespread fraud, including inflated hospital bills, falsified medical records, and claims for services never provided.
Audit findings also uncovered “upcoding” — where facilities charged patients for high-cost procedures while offering cheaper ones, pocketing inflated reimbursements from SHA.
The highest number of suspensions came from Mandera County, where eight facilities — including Aaref Medical and Health Service, Mama Elba Nursing Home, and Desertview Healthcare Services were barred.
Kisii County also recorded multiple suspensions, with facilities such as Nyanchwa Adventist Mission Hospital, Westlife Hospital Limited, and Lemmek Hospital Limited affected.
Other counties on the list include Kisumu, Turkana, Kakamega, Homa Bay, Meru, Migori, and Kirinyaga.
The Ministry of Health described the fraud as systematic and deliberate, noting some hospitals had been illegally converting outpatient visits into inpatient admissions to inflate claims.
Officials said the suspensions mark the latest step in a wider crackdown on corruption within the health financing system.
Duale warned that the government would continue to take tough measures to safeguard public funds and restore trust in the Social Health Insurance Fund.
