Ruto vows action over SHA scandal

President William Ruto has broken his silence on the Social Health Authority scandal, warning that stern action will be taken against hospitals and individuals implicated in the siphoning of public funds.

Addressing delegates from Kiambu County at State House, Nairobi,on Wednesday, the President said corruption in the new health fund will not be tolerated vowing that he will not stand back and watch the scheme meant to enhance universal health coverage collapse as NHIF did.

“Ile wizi iliyoangusha NHIF mpaka kukakua na madeni ya billion 30 haiwezi kufanyika kwa SHA and we will make sure of that, (the theft that happened at NHIf and resulted to debts worth Sh30 billion will not happen in SHA not under my watch,” Ruto said. 

This was the first time the President spoke publicly on the scandal that erupted weeks ago, where hundreds of hospitals had submitted false claims, manipulated patient records, and inflated bed capacities to mint billions from the scheme. 

“The digitisation process of SHA is helping us detect all fraudulent claims, all that ghost hospitals and all the fake patients attempting to carry out fraud in our health sector,” the President said. 

The revelations rocked public confidence in the scheme, forcing the Ministry of Health and SHA board into a nationwide purge. According to the President, so far, more than 1,000 health facilities have been shut down or suspended for malpractice, including at least 31 hospitals closed in June for double billing and ghost patient admissions. 

Another 40 facilities were suspended in August for fraud and collusion, while SHA Chief Executive, Mercy Mwangangi, announced the suspension of 45 more hospitals, bringing the tally of those barred from SHA benefits to around 85 institutions. 

Some of the hospitals suspended yesterday include Novic Medical (Nairobi) Equity Afia (Homa Bay and Mandera) Guardin Hospital (Meru), Kimathi Medical Servive (Kirinyaga and Lenmek Hospital Limited (Kisii) among others. 

“We have already closed close upto 100 facilities and we will not stop with that exercise. We are actually going to ensure they refund the money if they have been paid," the President said. 

The President was categorical that the government would not only shut down fraudulent hospitals but also prosecute those behind the scam. “We are going to prosecute them because it is criminal to steal money meant for patients. It is criminal to steal public resources using whatever means. So watch this space. SHA is going to work because we are going to eliminate fraud,” he said.

Several doctors and clinical officers have also had their access revoked and their cases referred to the DCI. The scandal has exposed glaring loopholes in the system, with some of the closed hospitals not appearing in the Kenya Master Health Facility Registry (KMHFR)  the official government database of licensed facilities. This has fueled criticism that SHA failed to verify claims against existing national records, allowing ghost hospitals to thrive.

Ruto’s remarks come after the Social Health Authority (SHA) quietly pulled down its official website sparking outrage and speculation among Kenyans already grappling with revelations of massive fraud within the agency.

The registry, managed by the Ministry of Health, provides detailed information about each facility’s location, ownership, services offered, and licensing status.