President William Ruto has disclosed that the government has shut down more than 1,000 health facilities involved in fraudulent activities under the Social Health Authority (SHA) programme.
These facilities were accused of submitting fake claims and defrauding the newly introduced health insurance system, which is part of Kenya’s wider Universal Health Coverage (UHC) reform.
The President made the announcement while addressing the public during a government engagement, saying the crackdown was part of a broader effort to protect public funds and restore order in the health sector.
The action was coordinated by the Ministry of Health, the Social Health Authority, and relevant investigative and regulatory bodies. President Ruto said the targeted facilities include private, public, and faith-based hospitals authorized to operate under the SHA programme. He did not disclose the names of the institutions but confirmed that investigations had revealed clear cases of abuse and financial misconduct.
Speaking during the address, President Ruto said:
“We have closed over 1,000 facilities. Some of them were claiming money for patients who do not exist. Others were submitting claims for services that were never rendered. That is outright theft of public funds.”
He added that the health sector must be protected from individuals and institutions seeking to benefit unlawfully from taxpayer money.
The crackdown began following the rollout of the SHA system earlier in 2024, with closures taking place over the past few months. The government initiated a system-wide audit of claims submitted by facilities shortly after SHA became operational, and investigations intensified after irregularities were detected.
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President Ruto indicated that the verification process is still ongoing and more facilities may face closure as findings continue to emerge. “We are not done. The auditing continues. We want to ensure that not a single shilling meant for health goes to fraudsters,” he said.
Although the President did not mention specific counties, he noted that the fraudulent activities occurred nationwide, pointing to a systemic challenge in the health insurance claims process. He said the audit and closure orders affected facilities in both rural and urban areas across Kenya.
“This is a nationwide operation. We are not targeting anyone unfairly. If a facility is clean, they remain operational. But if there is evidence of fraud, then we must act,” he told the gathering.
The President explained that the closures were necessary to prevent continued misuse of the SHA fund, which is central to the country’s goal of achieving Universal Health Coverage. The fund is meant to ensure that all Kenyans access quality healthcare regardless of income level.
“You cannot steal money meant for sick people and expect us to look the other way. Health is a public good. The SHA was created to ensure that all Kenyans can access affordable care—not to enrich a few dishonest people,” Ruto stated.
The President confirmed that the government has already handed over a list of implicated facilities to law enforcement agencies and the Ethics and Anti-Corruption Commission (EACC) for further investigation and prosecution. He said anyone found culpable, whether individuals or institutions, would be held accountable.
“We are not stopping at closure. Those who have defrauded the public must face the law. Investigations are ongoing, and arrests will follow. We are serious about cleaning up this system,” he warned.
Ruto also said reforms are being introduced within SHA to strengthen checks and balances, including digital verification of patient data and independent oversight mechanisms to monitor claims processing.
“We are redesigning the system. We are incorporating digital tools and real-time tracking so that every transaction can be accounted for,” he noted.
In addition, the Ministry of Health is revisiting the criteria used to accredit facilities under SHA and tightening standards for compliance.
The closure of over 1,000 health facilities marks one of the most aggressive steps taken by the government to address fraud in the public health sector. President Ruto’s administration has reiterated its commitment to restoring integrity in healthcare financing and ensuring that the SHA achieves its intended goal of accessible, affordable, and quality health services for all Kenyans.
“This is not just about numbers. It is about ensuring that every Kenyan who contributes to SHA gets value. We will not allow a few rogue facilities to ruin this noble programme,” the President affirmed.
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