The Social Health Authority (SHA) has responded to media reports alleging the disbursement of Ksh20 million to a non-existent health facility in Homa Bay County. This came following reports which claimed that SHA had disbursed the amount to the “Nyandiwa Dispensary” in West Kamagak Ward, which has been abandoned for 10 years.
Kenyans questioned a recent disbursement list bearing the name “Nyandiwa Dispensary.”
However, the authority in a statement released also on Friday termed the claims as misleading and inaccurate. SHA Chief Executive Officer Dr. Mercy Mwangangi emphasized that the reported funds were allocated to a legitimate and operational health facility — Nyandiwa Level 4 Hospital in Suba South, which has served the community since the 1970s.
She further clarified that the facility was previously a dispensary and has since been upgraded to a Level 4 hospital, a transition during which it retained its original bank account name, a practice SHA said is standard across many public health institutions in Kenya.
“In line with standard practice, the hospital retained its existing bank account under the name “Nyandiwa Dispensary” as it transitioned to Level 4. Many facilities across the country that began as dispensaries or sub-district hospitals maintain their original bank account names after upgrading,” Dr. Mwangangi explained.
The SHA CEO further stressed that the funds disbursed represent legitimate, accumulated claims processed under their strict verification and payment protocols. The payments span several months and cover a range of medical services including outpatient, inpatient, maternity, dialysis, and imaging, among others.
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SHA clarifies disbursing Ksh20 million to Nyandiwa Dispensary
Responding to claims about an abandoned structure highlighted in media coverage, Dr. Mwangangi clarified that the building in question is an incomplete project by a former county administration.
“The disbursement of Ksh19,998,720 represents legitimate and accumulated claims duly processed in line with SHA’s strict verification and payment protocols. To date, the facility has received Ksh751,504 under Primary Health Care (PHC) and Ksh82,080,706 under the Social Health Insurance Fund (SHIF), all acknowledged by the facility. These are accumulated payments from October 2024,” she added.
“The abandoned structure shown in the media is one of the incomplete facilities built by a former County administration. It has never been contracted by SHA and has no transacting rights.”
SHA further reaffirmed its commitment to transparency and financial accountability, pointing out that all payments are published on their website following each disbursement.
According to the authority, “these are not representative of one month’s claims, since the adjudication and verification process is continuous and happens at different stages.”
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Further clarification
It explained that the reported funds cover a wide range of benefit packages, including inpatient, outpatient, surgical, maternity, dialysis, mental health and rehabilitation services, as well as medical imaging and oncology-related care.
Given the diversity of these services and the variations in claims across different facilities, SHA highlighted that direct comparisons between hospitals based solely on disbursed amounts may lead to misleading conclusions.
“Payments under Primary Health Care Fund (PHCF) have already been disbursed. More payments for various packages are expected to be disbursed today and on Monday.
SHA does not and will never disburse funds to non-existent or uncontracted facilities. Every payment is subject to rigorous verification to safeguard public funds and strengthen health service delivery,” the statement adds.
The authority has urged media houses to responsible journalism in their reporting stressing that “the public deserves accurate information, particularly on matters concerning health financing reforms that are central to advancing universal health coverage in Kenya.”
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