The Kenya Moja political movement has called for the immediate resignation of Health Cabinet Secretary Aden Duale and Social Health Authority (SHA) CEO Mercy Mwangangi, accusing them of presiding over what they described as a “well-calculated scandal” in Kenya’s healthcare system.
During a press conference in Nairobi on Wednesday, the leaders alleged that public funds under SHA were being misused, including millions of shillings paid to facilities that no longer operate.
“SHA is a well-calculated scandal. There are facilities that were closed, and they continue receiving money from SHA. For example, Sipili Maternity and Nursing Home, which was shut down following a TV exposé, has received five million shillings,” the movement said.
Allegations of Fraud Through Former NHIF System
The leaders further claimed that the corruption is being facilitated through the former National Health Insurance Fund (NHIF) system, now integrated under SHA, terming it a betrayal of public trust.
“They are actually using the NHIF system. Enough is enough. We demand the immediate resignation of Aden Duale for conflict of interest, and the CEO of SHA for colluding to steal from Kenyans,” another member declared.
According to Kenya Moja leaders, CS Duale has been “talking tough on corruption” while being conflicted in the ongoing scandal. They argued that accountability must begin at the highest levels of government.
Growing Public Anger Over Healthcare Fraud
Public frustration has been growing amid persistent fraud allegations in the government’s health insurance scheme. Critics have questioned how SHA has been disbursing payments to hospitals, with reports of ghost facilities and inflated billing.
On Monday, the government controversially pulled down the public portal that allowed Kenyans to view monthly payments made to hospitals, along with the Kenya Master Health Facility Registry (KMHFR). The move triggered fresh criticism over transparency.
SHA Suspensions and Ministry Crackdown
SHA CEO Dr. Mercy Mwangangi announced on Tuesday that 45 health facilities had been suspended for defrauding the system, adding to the 40 facilities flagged earlier this month, bringing the total to 85 suspensions.
CS Aden Duale has confirmed that claims worth Ksh.3 billion are under re-evaluation due to missing documents, while another Ksh.2.1 billion remains under surveillance for potential fraud.
The Health Ministry has also rejected claims worth Ksh.10.6 billion, citing fraudulent practices such as:
- Upcoding of medical procedures
- Falsification of records
- Conversion of outpatient cases into inpatient admissions
- Phantom billing for non-existent patients
Mounting Pressure on Health Ministry
The scandal has intensified scrutiny on Kenya’s health sector, with calls for greater accountability and transparency in the management of SHA funds.
With political pressure rising, both Duale and Mwangangi face mounting demands to step aside as investigations unfold into what critics argue could be one of the largest healthcare fraud scandals in Kenya’s history.