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Ruto Closes 1,000 Ghost Hospitals Tied to SHA Fraud

Ruto Closes 1,000 Ghost Hospitals Tied to SHA Fraud
  • Over 1,000 health centres shut for defrauding the Social Health Authority (SHA)
  • The scam involved faking inpatient cases and admitting non-existent patients
  • Some hospitals even worked beyond their capacity using “ghost names”
  • Technology upgrades helped expose the fraud, says President Ruto
  • Patients also found aiding the fraud by giving out personal health codes
  • The cleanup aims to bring back trust in Kenya’s public health system

President William Ruto has revealed that the government has shut down more than 1,000 health facilities involved in cheating the new Social Health Authority (SHA) out of close to KSh 100 million.

Speaking during a meeting with Kenyans in London, the President said the scam mostly involved hospitals turning simple outpatient visits into expensive inpatient claims, or keeping patients admitted when they didn’t need to be.

An internal report by the Ministry of Health shows how some of these health centres claimed money for ghost patients, even reporting more people than their beds could hold. According to a Citizen TV report, the hospitals exaggerated numbers and faked documents just to make more money from the SHA.

Ruto didn’t mince words: “We’ve already closed down 1,000 fake hospitals, and more are on the list. If you cheat the system, we will find you and shut you down.”

It’s not just the facilities that are under fire. According to Health CS Aden Duale, investigations have shown that some patients gave out their hospital codes, allowing the fraud to continue. In some areas, SHA services have already been paused until everything is reviewed.

So far, 35 clinics have officially been closed, with over 10 counties affected by the ongoing probe.

Ruto credited the use of modern technology and digital systems in hospitals for unearthing the fraud. Today, we can track admissions and billing in real-time. That’s how we’re catching these tricks,” he explained.

The digital shift is part of broader SHA reforms aimed at making public health more transparent and effective, especially as the program becomes central to universal healthcare plans in Kenya.

As the clean-up continues, the government says it will not stop until the entire system is free of fake hospitals and false claims. This comes at a time when public trust in the national health system is under pressure, and the government wants to show it means business.

“This isn’t just about money. It’s about lives. It’s about ensuring the poor get the care they deserve without being robbed in broad daylight,” Ruto said.