SHA Suspends Bungoma West Hospital for 90 Days as Aden Duale Warns Facilities

The Social Health Authority (SHA) has suspended Bungoma West Hospital for 90 days over suspected fraudulent claims.

In a statement dated Friday, April 3, 2026, the Authority’s Chief Executive Officer, Dr Mercy Mwangangi, announced that the hospital is under investigation for alleged fake billing and other improper claims, which she said breached its contract with SHA, specifically Clause 16 of their agreement.

“Therefore, in accordance with GCC Clause 16.2, Bungoma West Hospital is hereby suspended from providing healthcare services to SHA beneficiaries and transacting with SHA, effective immediately for a period of ninety (90) days pending completion of investigations,” read part of the statement.

SHA Moves to Suspend Bungoma West Hospital Over Fraudulent Claims

As a result of the suspension, the facility has been barred from offering services to SHA beneficiaries or conducting any transactions with the Authority during the three months. The SHA CEO further stated that the Authority will not be liable for any services rendered during this period without express approval.

Also Read: Govt Responds to Gachagua’s Claims that SHA is Collapsing

SHA directed the hospital to immediately facilitate the transfer of all affected patients to nearby contracted facilities and ensure they are duly notified to avoid any disruption of care.

“Bungoma West Hospital must transfer current SHA beneficiaries to the nearest SHA-contracted facility, coordinate with the nearest SHA branch, notify beneficiaries of this suspension, and cooperate with follow-up investigations by SHA,” said Dr Mwangangi.

The suspension follows growing concerns over fraudulent healthcare claims that continue to burden public health finances.

Health Cabinet Secretary Aden Duale issued a separate statement backing the decision, warning that the government will not tolerate abuse of the system.

Duale Warns of Tougher Actions on Hospitals Defrauding the Authority

Duale stressed that any facility found engaging in fraudulent activities will face immediate suspension and further sanctions, reaffirming the Ministry of Health’s commitment to safeguarding public resources and ensuring integrity in service delivery.

“The Ministry of Health, through SHA, issues a firm warning that any facility found engaging in fraudulent claims will face immediate suspension and further sanctions,” said the CS.

Also Read: Ruto Responds to Gachagua on SHA Collapsing Within Six Months

Duale has repeatedly raised concerns over hospitals submitting fraudulent claims to SHA, Kenya’s universal health coverage scheme that replaced the NHIF, vowing that President William Ruto’s government will not entertain corruption in the health sector.

In a recent media briefing in February 2026, the CS revealed that an AI-powered verification system had successfully blocked over Ksh 12.7 billion in fraudulent claims submitted by various hospitals.

The findings followed intensive forensic audits and surveillance aimed at curbing the same types of corruption that plagued the defunct NHIF.

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Social Health Authority (SHA) headquarters in Nairobi. PHOTO/SHA