The Health Ministry has raised serious concerns about the growing number of private chemists setting up around public hospitals, warning that some may be working with rogue medics to divert medicines from patients.
Cabinet Secretary for Health Aden Duale told parliament that state-employed health workers must avoid unethical practices, including steering patients to specific pharmacies for personal gain.
Duale highlighted a worrying trend of pharmacies rapidly mushrooming near major referral and county hospitals, a development that could put patients at risk and raise questions about conflicts of interest.
“If you go to some of our referral hospitals, I will give you an example of Kisii. The hospital is surrounded by chemists. Every referral, every rural hospital — go to Nyeri, go to Garissa, everywhere in this country — they are surrounded by the same people. And the question is, who are the owners? Most likely, the owners are staff of the county, so they send their patients to pay directly,” he said.
The CS cited digital hospital records that reveal concerning patterns in medicine distribution. Of 52,000 patients who have gone through hospital processes digitally, only about 9,000 have actually received medicines.
“We have found that our referral hospitals, for example, Kakamega, Bomet and a number of others, since SHA came into being, over 52,000 patients have gone through the hospital digitally, and you can view them. But out of these 52,000, only 9,000 have received drugs. So we ask ourselves, what is the norm?” Duale asked.
Duale stressed that the ministry is committed to ensuring patients get their medicines. He added that the Social Health Authority (SHA) will not reimburse certain claims for drugs if patients do not receive them.
He further warned that public health workers found culpable of diverting medicines would face strict disciplinary action, including suspension or prosecution.
“So let me put it this way: if you are a member of the Social Health Insurance Fund premium and you are not given or dispensed a drug, SHA will not pay those reimbursements and claims. They will pay everything else, but they will not pay for drugs,” Duale said.
He also explained that Kenyans will be able to track whether they have received medicines through the SHA system, which can identify the facilities involved in any irregularities.
The CS made the remarks while appearing before the National Assembly’s Health Committee to defend the ministry’s budget in the Budget Policy Statement for the 2026-27 financial year. His warning comes as the sector faces a Sh365 billion funding gap, which the ministry has asked Parliament to consider to ensure smooth operations.
Duale noted that the shortfall could affect payment of personnel emoluments in referral hospitals, NHIF legacy debts, and pending bills owed to Kemsa and the Kenya Blood Transfusion Services, among others.
“The State Department for Medical Services looks forward to continued support and partnership with Parliament, and in particular this esteemed committee, in the process leading to the approval of the 2026 Budget Policy,” he said.
