A political storm is brewing over the newly established Social Health Authority (SHA) as a group of lawmakers under the Kenya Moja caucus has called for the immediate resignation of Health Cabinet Secretary Aden Duale, SHA Board Chair Dr. Mohamed Abdi, and CEO Dr. Mercy Mwangangi, citing explosive allegations of corruption, conflict of interest, and systemic mismanagement of public funds.
At a press conference held in Nairobi on Wednesday, August 27, 2025, the MPs, led by Senator Edwin Sifuna and Kitutu Chache South MP Antony Kibagendi, accused the top SHA officials of orchestrating what they described as a “grand and calculated theft disguised as healthcare reform.”
“CS Duale must go,” said Hon. Kibagendi.
“First, for conflict of interest. Second, for complacency. And third, for trying to hoodwink Kenyans with media theatrics, summoning cameras to harass facilities while the real looting continues behind the scenes.”
The MPs claim that SHA has become a conduit for siphoning billions of shillings, with irregular payments, ghost health centres, and suspicious procurement contracts forming the core of the scandal.
Among the most damning revelations in the unfolding SHA scandal is the alleged payment of millions of shillings to healthcare facilities that, according to lawmakers, do not exist or are no longer operational.
The MPs cited several examples, raising serious questions about the integrity of the SHA’s vetting and payment systems.
One such facility is Divine Sparkle Medical Center in Homa Bay County, which reportedly received Ksh 2.8 million in payments despite having no known physical presence.
Local investigations have allegedly confirmed that the center does not operate from any verifiable location.
Another flagged case is Hanano Nursing Home, which was reportedly paid over Ksh 4 million through SHA systems.
However, MPs claim the facility has no traceable address or current operations, casting doubt on how it qualified for public funds.
Perhaps most shocking is the case of Sipili Maternity and Nursing Hospital, which allegedly received close to Ksh 5 million in disbursements, even though the facility was shut down in 2022 after a damning TV exposé uncovered serious ethical violations.
Lawmakers argued that this instance alone illustrates gross negligence, if not deliberate fraud, within SHA’s verification processes.
These examples, they say, are just the tip of the iceberg in a web of “ghost facilities” that have pocketed public money meant to support Kenya’s universal healthcare rollout.
“How do you justify paying non-existent hospitals while genuine providers are being denied claims?” posed Funyula MP Wilberforce Oundo. “This is criminal.”
The lawmakers also questioned the sudden explosion of approved health centres in North Eastern Kenya, where the number of facilities reportedly ballooned from 153 to over 700 in less than a year.
One facility singled out was Wante Nursing Home Ltd, registered in February 2025, approved the next day, and by April had allegedly received Ksh 3.8 million, despite lacking a known address.
The MPs linked SHA Board Chair Dr. Mohamed Abdi to Ladnan Hospital, which they claim has benefited from irregular payments, while accusing CEO Dr. Mercy Mwangangi of facilitating improper disbursements.
“We demand the immediate resignation of the SHA Chairman, who is directly linked to Ladnan Medical Facility, and the CEO, who has presided over the fleecing of the health system,” read the statement from the caucus.
They further claimed that the Ministry of Health is involved in a scheme to defraud the public, and accused CS Duale of using public suspension announcements as a cover-up.
“What Duale is doing with his media blitz is just damage control. But Kenyans are not blind. We now see through this façade,” said Senator Sifuna.
The MPs also alleged that CS Duale is connected to a company contracted to manage SHA’s revenue system, raising further conflict-of-interest concerns.
The lawmakers painted a grim financial picture of SHA, warning that the institution is collapsing faster than its predecessor, the National Health Insurance Fund (NHIF).
“When NHIF was disbanded, it had a debt of Ksh 32 billion. SHA has already racked up Ksh 43 billion in unpaid claims in just 10 months. The total liability now stands at Ksh 75 billion,” warned Kitutu Masaba MP Clive Gisairo.
Calling SHA a “scam, not a reform”, the Kenya Moja MPs vowed to push for the establishment of a Parliamentary Commission of Inquiry when the National Assembly and Senate resume from recess.
“This isn’t just mismanagement, it’s theft. The President and his friend CS Duale must be held accountable for the scam they imposed on the people of Kenya,” added Bomachoge Borabu MP Obadiah Barongo.
They concluded by reiterating that SHA’s implementation was rushed, marred by opaque procurement, and built on a platform of lies and inflated costs.
“Why spend Ksh 104 billion on a system with no clear ownership, when upgrading NHIF would have cost only Ksh 700 million?” they asked.
