“A Lot of Fraud Took Place”: Audit Reveals KSh11 Billion Loss in SHA, CS Duale Confirms Hospitals Exploited System

A recent government audit has exposed major fraud in President William Ruto’s Social Health Authority (SHA). Between October 2024 and April 2025, the authority lost at least KSh11 billion. Most of the money went to false claims from private hospitals. The report shows weaknesses in the system that were exploited by unscrupulous facilities.

Health Cabinet Secretary Aden Duale confirmed the findings. Many hospitals converted outpatient services into inpatient claims. This allowed them to receive billions they were not entitled to. “A lot of fraud took place between October 2024, when SHA launched, and June. The situation is now stabilising. Our daily claims and revenue are balanced, and digital safeguards and investigative mechanisms have been put in place,” he said.

The audit revealed more irregularities in maternity services. Some hospitals falsely claimed all deliveries were caesarean sections. This violates World Health Organisation standards and increased payments. In other cases, staff were recorded as patients. Hospitals billed SHA for procedures never performed. Some claimed payment for costlier treatments than those actually delivered.

CS Duale said the Ministry of Health has strengthened safeguards. Claims are now verified before reimbursement. Digital checks and investigative teams review suspicious cases. Hospitals face stricter scrutiny. Repeat offenders risk penalties. These measures aim to protect public funds and prevent fraud.

The SHA faced early setbacks due to fraud. But the ministry is committed to restoring public trust. Duale said oversight has improved and monitoring is ongoing. The goal is to secure SHA operations and deliver quality healthcare.

With these safeguards, the authority aims to continue expanding affordable health coverage. Taxpayers’ money will be protected. Kenyans are urged to support the reforms and remain vigilant to ensure the system works effectively.