Nairobi, Kenya – August 22, 2025 – The Social Health Authority (SHA) has dismissed allegations that it wired Ksh20 million to a ghost health facility in Homa Bay County.
In a statement issued on Friday, SHA Chief Executive Officer Mercy Mwangangi described the reports as “false and misleading,” clarifying that the alleged Nyandiwa dispensary is now a fully functional Nyandiwa Level 4 Hospital located in Gwassi, Suba South.
“Nyandiwa Level 4 Hospital has been operational since the 1970s. The facility was formerly Nyandiwa Dispensary and was subsequently upgraded to a Level 4 hospital,” read part of Mwangangi’s statement.
Bank Account Name Retained
The CEO explained that the health facility retained its original bank account name, “Nyandiwa dispensary,” even after its upgrade, a common practice among health institutions across the country.
“Many facilities maintain their original bank account names after upgrading. The abandoned structure shown in the media is one of the incomplete facilities built by a former County administration. It has never been contracted by SHA and has no transacting rights,” she clarified.
Breakdown of Funds
Mwangangi revealed that the Ksh19,998,720 disbursed represents legitimate, accumulated claims processed through SHA’s stringent verification protocols.
She further noted that Nyandiwa Level 4 Hospital has received Ksh751,504 under the Primary Health Care Fund (PHC) and Ksh82,080,706 under the Social Health Insurance Fund (SHIF).
Public Accountability
SHA emphasized transparency, noting that all disbursement details are published on its website after each payment cycle.
“The public can access all payments made to facilities on the SHA website. These amounts are not representative of one month’s claims since adjudication and verification occur continuously at different stages,” said Mwangangi.
The CEO reiterated that SHA does not and will not disburse funds to non-existent or uncontracted facilities, adding that every payment undergoes rigorous vetting to protect public resources.
Our investigative team is, however, working on a report to ascertain that the facility referenced by SHA CEO is the same one overgrown by grass and whose gates have been closed for one year now.
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