Kenyans Lose Ksh.11 Billion in SHA Fraud Scandal

The Ministry of Health is facing renewed scrutiny after revelations that Kenya lost Ksh.11 billion within just six months in another major scandal. Despite the implementation of stringent procedures and a supposedly secure IT system designed to protect deductions from Kenyan workers, billions were still misappropriated through fictitious surgeries and fraudulent claims by health facilities, with complicity from SHA workers. Health Cabinet Secretary Aden Duale, speaking to National Assembly legislators in Naivasha, exposed a concerning trend where expectant mothers were being pressured to undergo surgical procedures during childbirth, some unnecessary, to inflate insurance claims. As part of efforts to crack down on those involved, 50 medical professionals have been removed from the list authorized to handle SHA transactions. During his presentation to the National Assembly retreat in Naivasha, Nakuru County, Duale detailed how taxpayers lost Ksh.11 billion between October 2024 and April 2025. The Health Secretary unveiled how numerous privately owned health facilities were directing mothers to delivery theaters for childbirth. “There are individuals forcing mothers to undergo C-sections when they can deliver naturally, just to claim an additional Ksh.20,000,” stated Duale. “We used to witness doctors encouraging mothers to push during delivery… Now it’s straight to the theater. We need to return to encouraging pushing,” said National Assembly Speaker Moses Wetang’ula. Duale revealed that many of the compelled C-section surgeries were fabricated. “One facility claimed they were performing C-sections, yet upon inspection, they had no operating theater despite submitting 35 claims for the procedure,” Duale noted. The Cabinet Secretary highlighted additional instances of fraudulent documentation, predominantly filled by a single individual, which were used to divert billions from SHA funds. “We have a patient in Kwale County with 381 dependent children. This individual has been referred to the DCI for investigation,” the CS added. National Assembly members pressed Duale to provide details of individuals implicated in the scandal and the measures implemented to date. “How many people have been arrested concerning the cases you’ve mentioned?” asked Charles Nguna, MP for Mwingi West. “We have deregistered 22 doctors and 36 clinical officers from the SHA platform. Additionally, 1,118 health facilities have been closed. The DCI has committed to pursuing those responsible for the theft,” Duale remarked. Duale mentioned that he submitted over 1,000 files to the DCI for investigation in September of the previous year, though the resolution rate of these cases remains below 100 percent. Amid the troubling revelations, the ministry highlighted aspects of a successful SHA rollout, noting that more than 29 million Kenyans have already registered on the platform.