Ruto Orders Hospitals Shut Down Over SHA Fraud to Refund Money

President William Ruto has ordered health facilities that were shut down after being found guilty of defrauding the Social Health Authority (SHA) to refund the millions of shillings they illegally received.

While speaking at the State House, where he met with grassroots leaders from Kiambu County on Wednesday, August 27, Ruto stated that the government has already shut down nearly 1,000 hospitals involved in fraudulent schemes.

He mentioned that fraudulent health facilities will not only be shut down but will also be compelled to refund whatever they claimed, and the culprits will be prosecuted.

“I want to promise the people of Kenya that we have already closed nearly 100 health facilities, and we are not going to stop there. We will make sure that they refund any money they may have been paid,” Ruto said.

“Those involved will be charged and prosecuted because it is criminal to steal money meant for patients and criminal to steal public resources.”

Ruto Orders Hospitals Shut Down Over SHA Fraud to Refund Money

Ruto noted that corruption had crippled the defunct National Health Insurance Fund (NHIF), saddling it with debts of up to Ksh30 billion.

He vowed that SHA, backed by digitisation, will not fall into the same trap.

“What brought down NHIF was corruption, leaving us with debts of up to KSh30 billion. That cannot happen under SHA,” he added.

 The digitization process of SHA is helping us detect fraudulent claims, ghost hospitals, and fake patients trying to defraud our health sector.”

In a strong reaffirmation of his administration’s agenda, Ruto said the ongoing reforms in healthcare are part of a broader transformation plan.

“We made a solemn commitment to the people of Kenya to transform our nation. We are proud to report that this promise is no longer a dream; it is unfolding before our eyes in healthcare, education, agriculture, infrastructure, and employment, among others.

“For example, healthcare is no longer a privilege for the few who can afford it, but a right for every Kenyan. SHA must work, and it will work,” he said.

Ruto warned that the government will not relent until all culprits are brought to book and all stolen funds recovered.

Also Read: SHA CEO Suspends 45 Hospitals with Immediate Effect (FULL LIST)

Hospitals Closed, Benefits Suspended in Nationwide SHA Fraud Purge

This comes after the Ministry of Health shut down several health facilities nationwide.

Health CS Aden Duale cited cases where SHA access codes were misused to claim services that were never rendered.

“We are aware of cases where patients share their access codes with hospitals to fraudulently claim services not rendered. That is criminal fraud, and all involved will be prosecuted,” he stressed.

On Tuesday, August 26, Social Health Authority (SHA) CEO Mercy Mwangangi gazetted 45 health facilities suspended from receiving benefits from the agency over fraud.

Also Read: Owners of Ladnan Hospital Revealed Amid Links to SHA Chairperson

With the new list, the total number of facilities suspended this month rose to 85. Dr. Mwangangi said the delisted facilities will not be entitled to any benefits from SHA.

Additionally, 728 non-compliant facilities were closed, while about 301 were downgraded by the Kenya Medical Practitioners and Dentists Council.

CS Duale recently revealed that since the rollout of SHA, rogue hospitals had attempted to steal Ksh10.6 billion by filing fraudulent claims.

“Every shilling in the Social Health Insurance Fund must go to genuine, life-saving healthcare,” he said.

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