Nyeri County Referral Hospital seeks MPs help over Sh16m erroneous SHA payment

The hospital says claims worth Sh56,121,150 were erroneously paid to a neighbouring facility which spent Sh16m of the money before the error was detected.

by JAMES GICHIGI

News06 September 2025 - 10:34

In Summary

The hospital’s Medical Superintendent, Doctor Benson Muchiri, told the National Assembly’s Committee on Health that between February and May this year, claims worth Sh56,121,150 were erroneously processed in favor of the other facility.
By the time the error was discovered, the neighboring hospital had allegedly already spent Sh16,756,200.

*National Assembly Health Committee Members at Nyeri County Referral Hospital on Friday, September 5, 2025. PARLIAMENT OF KENYA*

Nyeri County Referral Hospital has appealed to Parliament to help it recover more than Sh16 million that was erroneously paid to a neighbouring private hospital by the Social Health Authority (SHA).

The hospital’s Medical Superintendent, Doctor Benson Muchiri, told the National Assembly’s Committee on Health that between February and May this year, claims worth Sh56,121,150 were erroneously processed in favour of the other facility.

By the time the error was discovered, the neighbouring hospital had allegedly already spent Sh16,756,200.

“Out of this amount, the hospital spent Sh16,756,200 before the error was detected. The remaining Sh39,364,950 was later redirected to our account, but despite our efforts, recovery of the balance has been unsuccessful,” Dr. Muchiri told the Committee.

The legislators, led by Nyeri Town MP Duncan Mathenge, pledged to pursue the matter with urgency, noting that similar cases had emerged in other health facilities.

“That is a grave mistake by SHA. Unfortunately, it is not an isolated case, and the Committee will ensure corrective action is taken,” Mathenge assured.

Muchiri further explained that delayed claim settlements by SHA have continued to pile pressure on the hospital.

As of August, Nyeri Referral was owed Sh142,537,052.

“Out of total claims worth Sh339,649,692, only Sh197,112,640 has been paid, translating to just 58 per cent,” he explained.

He added that the now-defunct National Hospital Insurance Fund (NHIF) still owes the facility Sh156,615,121.

Earlier, the Committee toured PCEA Tumutumu Mission Hospital, where management warned that the facility risked closure due to unpaid claims.

Chief Executive Officer Kinya Mukiindia revealed that the mission hospital is owed more than Sh218 million in total, comprising Sh128 million from SHA and Sh89 million from NHIF.

Members of the Committee expressed concern that delays and erroneous payments were undermining the sustainability of hospitals and threatening the success of the government’s new medical insurance scheme.

"The Committee's tour of public and private medical facilities in Nyandarua and Nyeri counties to assess SHA operations, challenges, and areas of improvement has been successful as we have gathered a lot of data that will help propose ways of improving the new medical insurance scheme for the benefit of Kenyans," Mathenge said.

The two-day inspection also included MPs Pauline Lenguris of Samburu County and Mary Maingi of Mwea.