President William Ruto has announced the closure of 1,000 hospitals accused of engaging in fraudulent practices involving the Social Health Authority (SHA). Speaking during a diaspora townhall in London on Wednesday, Ruto emphasized that the crackdown is part of a broader effort to clean up the health sector and restore public trust in the government’s universal healthcare initiative.
“We have closed down 1,000 fake hospitals and we are closing a few more in the coming days because they want to change in-patient services to out-patient so they can claim more money,” President Ruto said. “We will shut them down and make sure the program is clean.”
The fraudulent scheme involves healthcare facilities allegedly falsifying medical records converting outpatient visits into inpatient claims and even admitting ghost patients. According to an internal Ministry of Health report seen by Citizen TV, the scam has already cost taxpayers nearly Ksh.100 million.
Health Cabinet Secretary Aden Duale confirmed that the ministry had already closed 35 health facilities linked to the fraud. Additionally, the SHA has suspended services at numerous facilities across more than 10 counties suspected to be part of the syndicate.
Duale also revealed that the fraud extends beyond healthcare providers, with some patients allegedly sharing personal hospital identification codes to help inflate claims and benefit from the illegal payouts.
“With the use of technology to verify claims, admissions, discharge, and claims are now digital and easy to track. That is why it is easy for us to discover these cases,” Ruto explained, highlighting the government’s commitment to using digital systems for accountability and transparency.
The ongoing probe into the fraudulent network underscores the challenges the SHA faces as it transitions from the National Health Insurance Fund (NHIF) to a new universal health coverage model. The crackdown is expected to continue in the coming weeks, with the government pledging to bring all perpetrators to justice.
This sweeping action signals a stern warning to those undermining healthcare reforms and affirms the government’s resolve to protect public funds and ensure that Kenyans receive the healthcare services they deserve.
