Nairobi, Kenya – August 22, 2025 – The Social Health Authority (SHA) has come out strongly to dismiss reports circulating in the media that it disbursed KShs. 20 million to a ghost health facility in Homa Bay County.
In a detailed statement released on Friday morning and shared on its official X (formerly Twitter) page, the health insurance authority described the allegations as false, misleading, and harmful to responsible journalism.
The statement emphasized the need for accuracy, fairness, and balance in reporting, urging journalists to exercise due diligence and fact-check with relevant authorities before publishing.
SHA Clarifies the Facts
According to the authority, the facility in question is Nyandiwa Level 4 Hospital, located in Gwassi, Suba South, Homa Bay County. The hospital has been operational since the 1970s and was originally Nyandiwa Dispensary before being upgraded to a Level 4 hospital.
The SHA explained that, in line with standard practice, the hospital retained its existing bank account under the name “Nyandiwa Dispensary” as it transitioned to a higher-level facility. This, SHA noted, is a common practice across the country since many dispensaries and sub-district hospitals maintain their original bank account names after upgrading.
The authority further clarified that the KShs. 19,998,720 disbursed to the facility represents legitimate and accumulated claims duly processed under strict verification and payment protocols.
To date, the facility has received KShs. 751,504 under the Primary Health Care (PHC) fund and KShs. 82,080,706 under the Social Health Insurance Fund (SHIF). These funds are recognized by the hospital and represent accumulated payments from October 2024.
Misreporting on an Abandoned Structure
SHA strongly refuted claims based on images circulating in the media of an abandoned facility structure. The authority explained that the building shown is an incomplete facility built by a former county administration, which has never been contracted by SHA and has no transaction rights.
“The public can access all payments made to facilities on the SHA website, which are posted after each disbursement. These are not representative of one month’s claims since the adjudication and verification process is continuous and happens at different stages,” the statement read.
Health Benefit Packages Explained
SHA further elaborated that the funds disbursed cover a wide range of benefit packages, including:
- Inpatient and outpatient services
- Surgical and maternity care
- Dialysis and renal health
- Mental wellness and rehabilitation
- Medical imaging services
- Haematology and oncology care
The statement emphasized that a simple eyeball comparison between facilities could easily mislead the public since payments vary depending on claims submitted and verified at different times.
Additionally, SHA confirmed that payments under the Primary Health Care Fund (PHCF) have already been disbursed, with more expected to follow by Monday.
Strong Warning Against Misleading Reports
The Social Health Authority made it clear that it does not and will not disburse funds to non-existent or uncontracted facilities.
“Every payment is subject to rigorous verification to safeguard public funds and strengthen health service delivery,” the statement noted.
The authority urged media outlets to uphold the principles of responsible journalism, stressing that misleading reports could damage public trust and undermine health financing reforms that are critical to achieving universal health coverage in Kenya.
Appeal to Journalists and the Public
SHA called on media practitioners to verify facts with SHA or the Homa Bay County Department of Health before publishing such sensitive reports. According to the authority, a simple clarification would have highlighted the difference between the fully operational Nyandiwa Level 4 Hospital and the abandoned structure falsely portrayed as the ghost facility.
The CEO of SHA, Dr. Mercy Mwangangi, signed off the statement by urging the public to demand accurate reporting on health-related matters, given their central role in advancing access to healthcare for all Kenyans.
Why This Matters
The controversy highlights the importance of accountability in health financing and the crucial role of media in shaping public perception. As Kenya continues to roll out universal health coverage reforms, ensuring transparency, accuracy, and public trust remains a top priority.
By addressing the allegations head-on, SHA aims to reassure Kenyans that public funds are safeguarded and directed toward legitimate facilities delivering essential healthcare services.
Key Takeaways:
- Nyandiwa Level 4 Hospital is fully operational and not a ghost facility.
- SHA has disbursed nearly KShs. 20 million in verified claims to the hospital.
- Allegations in the media were based on an abandoned, uncontracted structure.
- SHA reaffirmed its commitment to strict verification protocols in fund disbursement.
- Journalists have been urged to exercise responsible reporting on health matters.
