SHA Denies Claims of Ksh20M Payment to Ghost Nyandiwa Hospital

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The Social Health Authority (SHA) has strongly denied reports claiming it disbursed Ksh20 million to a non-existent health facility, terming the allegations false, misleading, and irresponsible.

In a statement issued on Friday, August 22, 2025, SHA Chief Executive Officer Dr. Mercy Mwangangi clarified that the payment was made to Nyandiwa Level 4 Hospital in Homa Bay County.

The hospital, operational since the 1970s, was formerly Nyandiwa Dispensary and retained its original bank account name after being upgraded, in line with standard practice across the country.

Dr. Mwangangi explained that the Ksh19,998,720 in question represented legitimate and accumulated claims, duly verified under SHA’s strict protocols. She added that since October 2024, the facility has received Ksh751,504 under the Primary Health Care Fund (PHC) and Ksh82,080,706 under the Social Health Insurance Fund (SHIF), all acknowledged by the hospital.

She dismissed images of an abandoned structure circulated in the media, clarifying that it was one of several incomplete facilities built by a former county administration and has never been contracted by SHA.

“The Social Health Authority does not and will never disburse funds to non-existent or uncontracted facilities. Every payment is subject to rigorous verification to safeguard public funds and strengthen health service delivery,” she said.

Dr. Mwangangi further noted that all disbursement data is publicly available on the SHA website after each release, stressing the Authority’s commitment to transparency and accountability. She urged the media to uphold accuracy and fairness by verifying facts before publication.

The SHA CEO added that current payouts cover a wide range of benefit packages, including outpatient, inpatient, maternity, dialysis, mental health, and cancer treatment, cautioning against misleading comparisons between facilities without considering service variations.

Police investigations into the false report have not been confirmed.

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