Health Cabinet Secretary Aden Duale has admitted that over Ksh11 billion in Social Health Authority (SHA) funds remain unaccounted for, prompting calls from Kenyans for his removal from office.
Speaking before a parliamentary committee on January 28, Duale revealed that the massive losses occurred within just six months and were uncovered by SHA’s AI-powered fraud detection system. The system flagged widespread manipulation of medical records and inflated billing across numerous hospitals.
The Cabinet Secretary described the situation as alarming, noting that many of the implicated medical facilities had a history of defrauding Kenya’s now-defunct National Hospital Insurance Fund (NHIF) prior to the introduction of #SHA. “We have observed systematic fraud by some hospitals, which has resulted in billions of shillings being lost in a very short period,” Duale told MPs.
He stressed that while SHA has implemented stringent monitoring and verification measures, the scale of the fraudulent activities highlights deep-rooted weaknesses in the country’s health insurance and regulatory systems.
The disclosure has ignited public outrage, with Kenyans taking to social media to demand accountability and for the Health CS to be sacked over the apparent mismanagement. Many critics argue that the losses not only undermine trust in the health system but also deny thousands of patients access to critical medical care.
Duale assured lawmakers that investigations are ongoing and that SHA is working to recover the stolen funds while tightening oversight to prevent further abuses. However, the revelation has intensified scrutiny of his leadership and the effectiveness of Kenya’s health insurance governance.