The Ministry of Health has revealed major fraud in Kenya’s health insurance system, with some counties hit harder than others.
Health Cabinet Secretary Aden Duale said Homa Bay, Bungoma, Mandera, Wajir, and Kisii have been the most affected, with the majority of the 1,000 facilities shut down nationwide located in these regions.
Over the past five days, SHA has closed 12 hospitals across the country for illegally claiming funds.
“Since 30 March 2026, we have closed down over 12 hospitals in SHA, many of which are public and private facilities. The system and SHA forensic auditors have flagged these hospitals as facilities that are involved in serious fraud,” Duale said.
“The hospitals are in Bungoma, Homa Bay, Kirinyaga, Mombasa, Nairobi, Mandera, and Wajir. And I want to assure the Kenyan citizens that we will protect healthcare funds that are meant to cater for the healthcare sector,” he added.
Duale further revealed that 24 facilities are undergoing forensic audits, while the Directorate of Criminal Investigations is probing 250 more over suspected fraud. He also said 30 case files have been sent to the Office of the Director of Public Prosecutions, with 18 facilities already facing active court proceedings.
The CS made the revelations on Saturday, 3 April 2026, during a graduation ceremony at the Hawa Kosar Islamic Centre in Garissa County.
The crackdown comes as the government works to roll out one of President William Ruto’s key projects, the Social Health Authority, which replaced the National Hospital Insurance Fund to provide universal health coverage.
So far, over 30 million Kenyans have registered with SHA, but only a small fraction are actively contributing to the scheme.