The Social Health Authority (SHA) has clarified reports claiming it disbursed nearly Sh20 million to a non-existent health facility, saying the money was legitimately paid to Nyandiwa Level 4 Hospital in Homa Bay County.
SHA CEO Mercy Mwangangi said the hospital, located in Gwassi, Suba South, has been operational since the 1970s when it began as a dispensary and was later upgraded to a Level 4 hospital.
However, during the transition to Level Four Hospital, the facility retained its account name “Nyandiwa Dispensary,".
“The disbursement Sh19,998,720 represents legitimate and accumulated claims duly processed in line with SHA’s strict verification and payment protocols,” Mwangangi said in a statement.
The confusion may have arisen because there is also a different Nyandiwa Dispensary in Kasipul constituency, which does not have an account with SHA and never had the same with the now moribund NHIF.
"A simple verification with SHA or the Homa Bay County Department of Health would have clarified the distinction between Nyandiwa Level 4 Hospital (an operational facility with active claims), and the uncommissioned structure visited by journalists," she said.
Mwangangi further dismissed photos circulated in the media showing an abandoned building, saying the structure and said it was never contracted by SHA.
She reiterated that the authority has ethical principles, adding that all payments are subject to rigorous checks to protect public resources.
"SHA does not and will never disburse funds to non-existent or uncontracted facilities," she said.
"Every payment is subject to rigorous verification to safeguard public funds and strengthen health service delivery."
She urged media outlets to exercise basic due diligence and fact-checking before publication.
"The public deserves accurate information, particularly on matters concerning health financing reforms that are central to advancing universal health coverage in Kenya,” Mwangangi said.
Regarding the disbursement, she said the hospital has received Sh751,504 under the Primary Health Care Fund (PHC) and Sh82,080,706 under the Social Health Insurance Fund (SHIF) since October 2024, all acknowledged by the facility.
Mwangangi emphasised that all facility payments are posted on its website after each disbursement and are not reflective of one month’s claims.
Payments, she added, cover multiple benefit packages including inpatient, outpatient, surgical, maternity, dialysis, mental wellness and rehabilitation, medical imaging, and oncology services.
Mwangangi noted that Primary Health Care Fund payments have already been released, with more disbursements for various packages expected by Friday and Monday.
