SHA CEO Mwangangi gazettes 40 hospitals suspended from SHA

The government has officially suspended 40 health facilities from participating in the national health insurance scheme, citing alleged fraudulent practices. 

The announcement was made through Gazette Notice, published under the Social Health Insurance Act, 2023, dated August 8, 2025.

According to the notice issued by the Social Health Authority (SHA) CEO Mercy Mwangangi, the facilities listed in the schedule have been suspended pursuant to Section 48(6) of the Act. 

“In accordance with the provisions of the Social Health Insurance Act, the health facilities set out in the Schedule shall not be entitled to any benefit from the Social Health Authority during the period of their suspension,” the notice reads.

The hospitals are located in Homa Bay, Nairobi, Bungoma, Kakamega, Vihiga, Busia, Kajiado, Wajir, Kisumu, Kilifi, Mandera and Kirinyaga counties.

The notice was released minutes after Health Cabinet Secretary Aden Duale announced the suspension of the 40 hospitals.

Speaking during a press briefing on Friday, Duale said the facilities must comply with the rules and the regulations. 

“These suspensions take effect immediately. During the investigation period, these facilities will not receive any benefits from SHA, and we will surcharge them for the money lost,” he said.

Duale said the government has also identified several health professionals involved, including eight doctors in Nairobi, Bungoma and Kilifi.

“…any doctor or health official involved in defrauding SHA will be held personally responsible,” he said. 

He said they have flagged the growing tendency by some facilities, both private and government, to fraudulently convert outpatient cases into inpatient ones, particularly in Nairobi and Homa Bay.

“The fourth issue is multiple billing and ghost patients. For example, in Mandera County, four different facilities submitted claims for the same patient who was only admitted to one facility,” he said.

Duale said the Ministry will publish the names of the suspended hospitals in a Gazette Notice after they are investigated by the DCI.

“We will hand over all the hospitals and the 12 health officials to the DCI for further investigations. Additionally, we have ordered the relevant regulatory bodies to cancel their licenses,” Duale said