![Kenyan Banks Half-Year Profits 2026: Kcb, Equity, Co-Op And Others [List]](https://cdn.thekenyatimes.com/uploads/2025/08/One-of-the-branches-of-Sidian-Bank.-PHOTOSidian-Bank.png "Sidian Bank Approved By Cbk To Receive Sha Funds")
Sidian Bank has revealed that it was approved by the Central Bank of Kenya (CBK) to receive Social Health Authority (SHA) remittances.
In a statement dated Monday, August 25, 2025, the bank noted that it has been receiving SHA funds.
“Sidian Bank is one of six CBK-licensed banks—KCB, Sidian, Co-operative, Equity, Absa, and DTB—selected for SHIF remittances after employer consultations,” the bank stated.
The announcement came amid widespread speculation and allegations that the bank has been managing SHA funds, with some reports linking it to claims that SHA paid out money to “ghost” facilities.
Sidian Bank Denies Managing or Holding SHA Funds
Additionally, several social media users alleged that high-profile politicians were using the bank to launder SHA funds.
Sidian Bank, however, clarified that its role is strictly limited to collections and remittances on behalf of employers.
“We do not hold or manage SHA funds,” the bank stressed.
In a past media interview, SHA Chairperson Dr. Abdi Mohamed explained that employer preferences guided the choice of the six banks, including Sidian Bank, that were approved for SHIF payments.
Also Read: SHA Breaks Silence on “Ghost Hospital” That Received Ksh20 Million
Sidian Bank’s role, he noted, is limited to processing remittances and ensuring secure transfers to SHA, with no involvement in operations or disbursements.
“We spoke to employers, who told us their preferred banks for remittances, and ensured those banks were approved and licensed by CBK. We also provided our own paybill number for individuals who wish to pay via M-Pesa,” said Dr. Abdi.
Hospitals Designated to Receive SHA Deductions
The bank’s clarification comes at a time when SHA has been battling allegations of fraud. On August 25, 2025, Health CS Aden Duale announced that the Ministry of Health had rejected fraudulent claims worth KSh 10.6 billion since the rollout of TaifaCare on October 1, 2024.
A digital audit flagged irregularities, including phantom billing, upcoding, falsification of records, and converting outpatient visits into inpatient admissions. Specific cases cited included Nabuala Hospital in Bungoma, which allegedly falsified multiple Caesarean section claims, and Kotiende Medical Centre in Homa Bay, which was accused of fabricating patient records.
Also Read: List of 40 Hospitals Suspended by Duale [FULL LIST]
Duale revealed that 728 health facilities were closed and 301 downgraded in a nationwide audit, with 45 more facilities facing potential degazettement.
Currently, the banks designated to receive SHA remittances, apart from Sidian Bank, include KCB, Co-operative Bank, Equity Bank, Absa, and Diamond Trust Bank. These are the primary institutions for employer contributions to the Social Health Insurance Fund (SHIF), all approved by the Central Bank of Kenya.
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