Nairobi, March 10, 2026 – Health Cabinet Secretary Aden Duale has dismissed allegations that KSh50 billion was lost at the Social Health Authority (SHA), calling the claims a “gross misrepresentation of facts” to the public.
The response comes after a report in a leading local daily suggested irregularities in SHA payments, including a claim that doctors had allegedly performed open-heart surgery on the same patient four times in one day, with the cost covered by the authority.
Addressing the media on Tuesday, CS Duale emphasized that no billions had been misappropriated, noting that the figures cited represented standard accounting provisions and legally sound payments.
“The Ministry of Health and the Social Health Authority respect the role of the media in fostering public accountability. However, presenting statutory accounting estimates, legal benefit packages, and standard transitional bank transfers as ‘missing’ or ‘looted’ funds is a gross misrepresentation of facts,” Duale stated.
Breaking Down the Alleged Losses
The disputed report cited several figures: an “irregular transfer” of KSh1.3 billion, another KSh1.3 billion as “untraced” funds, KSh2.8 billion in “unsupported claims,” KSh7.3 billion for “unauthorised services,” KSh1.56 billion sent to “uncontracted facilities,” and KSh2.4 million in “overpayments.”
CS Duale provided step-by-step clarifications:
- KSh1.3 billion transfers – The Cabinet Secretary asked rhetorically, “How can a fund (SHIF) transfer money to itself or its own managing body (SHA) in a way that constitutes irregular loss?” He said the transfer was part of standard operational procedures.
- KSh2.8 billion in “unsupported claims” – Duale explained that KSh26.8 billion had been responsibly set aside to pay hospitals for services already provided, but for which final paperwork had not been submitted by the close of the audit period. He said this was an accounting estimate of future liabilities under International Financial Reporting Standard 17 (IFRS 17), not a cash loss.
- KSh7.3 billion for “unauthorised services” – The CS clarified that SHA manages two separate funds: the standard Social Health Insurance Fund (SHIF) and the Public Officers Medical Scheme Fund (POMSF), which covers teachers and civil servants with enhanced benefits. The auditor had assessed the POMSF claims using SHIF rules, leading to misinterpretation.
- KSh1.56 billion to “uncontracted facilities” – During SHA’s transition in October 2024, hospitals with valid NHIF contracts were allowed to continue treating patients while their new digital e-contracts were being processed. Duale said flagging them as “uncontracted” ignored the reality that turning away patients would have been catastrophic. Only a small portion, KSh92.4 million, was suspended due to genuine contracting anomalies.
- KSh2.4 million “overpayments” – The SHA digital claims system automatically corrects clerical errors to align with legally prescribed tariffs, ensuring hospitals are reimbursed correctly.
Call for Responsible Reporting
CS Duale urged journalists to ensure accurate reporting, stressing that headlines must reflect the substance of stories without causing unwarranted public panic.
“The media plays a critical role in holding institutions accountable, but responsible reporting requires presenting facts objectively. Misrepresentation only undermines public trust and creates unnecessary alarm,” he said.
Duale’s clarifications come amid heightened public scrutiny of SHA’s operations following its absorption of NHIF services and the rollout of new digital claims systems.
As the debate continues, the Health Ministry maintains that the SHA remains financially accountable, with all expenditures verifiable and compliant with national and international accounting standards.
