Principal Secretary for the State Department of Medical Services, Ministry of Health, Ouma Oluga, has slammed private and public hospitals for inflating medical charges, citing cases where painkillers costing Ksh30 were sold for Ksh1,500.
Speaking at an interview on a local radio station on Tuesday, August 26, 2025, Oluga highlighted the systemic nature of the problem, noting that ordinary Kenyans are bearing the brunt of inflated medical costs.
“The level of overcharging is unacceptable. Basic healthcare services are being exploited, and it is our duty to ensure citizens are not defrauded,” he said.
“That Panadol costs Ksh30 bob, but you’ve been charged Ksh1,500 in the hospital. And citizens don’t know. So, in fact, forget about even the claims. Does that happen, though? Yeah, it happens all the time in the private sector,” the PS added.
The PS explained that both private medical insurance providers and government systems are impacted by such irregularities.
He cited an example where a CT scan valued at Ksh 16,000 was being billed at Ksh 35,000, forcing private insurers to suspend services from the offending hospitals.
“This is not limited to a few facilities; the problem is widespread, and we are determined to hold everyone accountable,” Oluga noted.
Oluga confirmed that the Ministry of Health, in coordination with the Social Health Authority (SHA), is conducting audits and strengthening oversight of hospitals that inflate costs or submit fraudulent claims.
The reviews have already resulted in the closure or downgrading of hundreds of facilities, both private and public, found violating regulations.
He emphasised that all claims submitted to SHA or other medical schemes must reflect actual services provided.
“If a service was not offered or the charges are exaggerated, action will be taken against the offenders. This is a country-wide issue that requires decisive measures,” Oluga said.
The crackdown follows a wider investigation into SHA payments, which comes after the government revealed claims worth Ksh 5.1 billion are under re-evaluation amid concerns of fraudulent billing.
Health Cabinet Secretary Aden Duale also noted that the government had observed a worrying trend involving healthcare facilities, including double-charging of patients to defraud the public health insurance scheme.
