The newly established Social Health Authority (SHA), intended to provide affordable health coverage for all Kenyans, is currently embroiled in widespread allegations of fraud and mismanagement, leading to significant public outcry and the closure of vital health institutions. The controversy highlights a critical debate over accountability and the integrity of national healthcare services.

A notable case at the forefront of this scandal involves St. Mary's Mumias Mission Hospital, which closed its doors due to what it claims are unpaid dues from the SHA. Catholic Bishop Joseph Obanyi, overseeing the Kakamega and Vihiga Dioceses, stated that the mission hospital is owed Sh140 million (or Sh143 million as per another account) by the SHA, but has only received Sh9 million, specifically designated for its renal unit. Bishop Obanyi firmly dismissed claims made by Prime Cabinet Secretary (PCS) Musalia Mudavadi.

On the other hand, PCS Musalia Mudavadi publicly announced that St. Mary's Mission Hospital had received Sh82 million out of Sh117 million owed by SHA. He presented a report, purportedly from the Ministry of Health, indicating that the hospital had received Sh92.9 million from SHA, including a recent disbursement of Sh4.8 million in August 2025. This report detailed total payments of Sh98.9 million between November 2024 and August 2025 across three vote heads. It also noted that Sh10.2 million in claims were returned due to incompleteness, and another Sh11.4 million were rejected. The report further suggested that approximately Sh14.8 million received by the facility in July and August 2025 was used to settle staff salary arrears. Mudavadi challenged the hospital’s management, attributing its woes to mismanagement and dismissing politicians who blame the government for the facility's troubles. SHA Chairman Abdi Mohamed, when contacted, could not confirm the authenticity of the report posted by Mudavadi, stating that only the hospital's management could do so. The hospital's staff received email notifications on July 1, 2025, instructing them not to report for work until further notice.

Adding to the gravity of the situation, the Directorate of Criminal Investigations (DCI) has confirmed receiving 1,188 case files linked to alleged fraud within the Social Health Authority. These files were handed over by the SHA itself and the Kenya Medical Practitioners and Dentists Council (KMPDC), and pertain to individuals, entities, and various parties suspected of engaging in healthcare fraud. DCI Director of Communication John Marete stated that a multi-agency team has been constituted to review these files, aiming to ensure accountability for all involved, regardless of social status or political affiliations. The DCI also pledged to work with other law enforcement agencies to recover fraudulently acquired assets. This development followed the Ministry of Health's submission of files and supporting evidence, with Health Cabinet Secretary Aden Duale confirming that intensive forensic reviews and a comprehensive digital audit led to the closure of 1,300 health facilities implicated in fraudulent or non-compliant practices. Of the submitted files, 190 originated from the SHA, while 998 were forwarded by KMPDC, involving facilities that were either unregistered, unlicensed, or operating below required medical standards. CS Duale emphasized that these patterns of fraud directly harm the public and deplete resources meant for patient care.

Despite these admissions of widespread fraud at SHA, senior officials implicated in the scandal appear to remain shielded, with no significant action taken against them. This perceived sluggish response has tested President William Ruto’s public commitment to swift arrests and the recovery of stolen billions.

The controversy has sparked a strong political backlash. Leaders of the Kenya Moja Movement, including Nairobi Senator Edwin Sifuna, Gathoni Wamuchomba (Githunguri MP), Saboti MP Caleb Amisi, Babu Owino (Embakasi MP), Barongo Obadia (Bomachoge MP), and Oundoh Mudenyo (Funyula MP), have vowed to push for the removal of Health Cabinet Secretary Aden Duale. They announced plans to table an impeachment motion against Duale once Parliament resumes, arguing that he has lost the moral authority to serve due to the corruption under his watch. Senator Sifuna declared that billions of shillings meant to protect poor households are being looted, and that Duale must go. The Kenya Moja lawmakers also criticized President Ruto’s administration for inflicting hardships through high taxation and deteriorating public services, predicting that the Kenya Kwanza government would not survive beyond one term. Babu Owino accused the government of hypocrisy for shielding top officials despite promising to fight corruption, while Caleb Amisi asserted Kenya Moja's formidable presence in politics, aiming to take power in 2027.

Adding to the calls for accountability, Kakamega Senator and Senate Majority Chief Whip Boni Khalwale separately urged President William Ruto to sack Duale, SHA Chief Executive Officer Dr. Mercy Mwangangi, and SHA Board Chairperson Abdi Mohamed. Khalwale accused the trio of overseeing the loss of Sh24 billion meant for the new health insurance scheme. He directly linked the fall of St. Mary’s Mumias Mission Hospital and the struggles of other facilities to their mismanagement and corruption, which he stated has crippled health service delivery across the country. Khalwale challenged President Ruto to demonstrate his administration’s commitment to fighting corruption by acting against senior officials, warning that selective justice would deepen public mistrust and lead Kenyans to conclude the government is protecting thieves. The SHA, launched to replace the National Health Insurance Fund (NHIF), was heralded as a flagship program but its credibility has been severely questioned by these recent financial improprieties and procurement scandals.