- Health CS Aden Duale blamed hospitals for fake SHA claims.
- He said Sh11 billion was paid for services never offered.
- Most irregular claims came from private hospitals.
- Over 1,100 health facilities have already been shut down.
- DCI is investigating as MPs clash over the SHA crisis.
Health Cabinet Secretary Aden Duale has accused medical facilities of being behind the billions lost under the Social Health Authority (SHA).
Speaking on Wednesday, January 28, during a Members of Parliament retreat in Naivasha, the CS said hospitals submitted false claims that were later paid by the national health insurer.
He was responding to media reports alleging that Sh11 billion disappeared from the fund.
According to Duale, the losses occurred when SHA was still new, between October 2024 and April 2025.
He explained that some hospitals took advantage of system weaknesses during the early rollout period.
“The money was lost after facilities filed claims for services they never provided,” he told MPs.
The CS revealed that several institutions have already been taken to court, while others have agreed to refund the money.
He said the government has full records of the facilities involved and can make the names public if needed.
Most of the questionable claims, he added, were rejected after verification.
Duale disclosed that private hospitals accounted for the highest number of false claims.
Public hospitals also appeared in the investigations, including major referral facilities such as Kenyatta National Hospital.
Faith-based hospitals, however, recorded the fewest cases.
The Directorate of Criminal Investigations (DCI) has joined the probe as the ministry moves to recover every shilling.
Some hospitals have already been removed from the SHA system.
Duale said action would continue until all funds are accounted for.
Lawmakers raised concerns that some hospitals endangered patients to increase payouts.
They questioned why many expectant mothers were allegedly pushed into caesarean deliveries even whena normal birth was possible.
The CS acknowledged the issue and said it remains under active review.
Duale confirmed that 1,118 health facilities have so far been shut down.
He added that the rollout of the Green Label Chart will help stop false reporting and tighten claim verification going forward.
The scandal triggered sharp reactions in Parliament.
Mumias East MP Peter Salasya claimed the situation showed the health sector had collapsed under President William Ruto’s government.
He called for the dismissal of CS Duale and his team.
Meanwhile, Irungu Nyakera alleged that SHA was created as a new route for public funds misuse.
Despite the backlash, the Ministry of Health insists reforms are ongoing and accountability measures are being strengthened.
Investigations continue as pressure mounts on both health facilities and government agencies to restore trust in the national health insurance system.
