President William Ruto has fired a warning to hospitals demanding money for outpatient services, saying the government has fully covered the costs.
Dr Ruto said his administration has set aside Sh21 billion to carter for the services from Level One to Four hospitals.
The directive by the President is a relief to millions of Kenyans who have been struggling with mounting medical bills.
Addressing delegates at the 2025 Devolution Conference in Homa Bay County, the President said the money will be used for treatment and medicine.
Dr Ruto added that health institutions in many counties are still demanding payment whenever a patient visits.
“All outpatient treatment is fully paid for by the government. No hospital, dispensary or health centre should demand money from citizens who go there to seek treatment. The government will give refunds for the drugs given to citizens in those hospitals,” he said.
“Your work is to register with the Social Health Authority (SHA). You will be treated and given medicine. Do not pay anything. I know there are hospitals still demanding money from Kenyans. If they ask you for cash, report them to the nearest police station. Those are fraudsters who are out to steal from you.”
The warning comes hot on the heels of the suspension of 40 hospitals from SHA by Health Cabinet Secretary Aden Duale.
Mr Duale accused the hospitals of engaging in fraudulent deals and irregularly generating money from SHA.
The hospitals were suspended through a gazette notice by SHA Chief Executive Officer Mercy Mwangangi.
It followed what the Ministry of Health said was the unearthing of widespread fraudulent claims to SHA.
Among those affected is Rachuonyo South Sub-County Hospital, a public health institution in Homa Bay County.
The suspension of the hospitals follows a month-long audit of SHA’s digital health system, which flagged the suspicious claims. The Directorate of Criminal Investigations (DCI) is looking into the issue.
President Ruto said some officials at the hospital have been dismissed by the devolved government of Homa Bay after being caught up in the scandal. He added that disciplinary action would be taken against them.
“We will have them arrested and prosecuted. They must be held to account. We will do the same to every hospital that attempts to steal from public resources meant for health,” Dr Ruto said.
Following the directives, the Homa Bay County Department of Health drafted a memo to hospitals advising them to adhere to the SHA provisions.
County Health Chief Officer Kevin Osuri asked people in charge of hospitals to consult SHA offices whenever they are in doubt.
Mr Duale said the audit uncovered multiple fraudulent activities by hospitals, including claiming for more expensive procedures than those performed and falsifying records by submitting altered information, like converting outpatient visits to inpatient care.
The others are billing for services residents deny receiving as well as multiple billing and phantom patients. Many of these fraudulent schemes involve collusion between hospitals to claim for the same patient.
Most of the hospitals involved in these deals are in Nairobi, Bungoma, Homa Bay, Mandera and Kilifi counties.
The ministry also withdrew SHA platform access rights from eight doctors and four clinical officers linked to the fraud. Their names were forwarded to the DCI.
Top ministry officials said the investigations could lead to disciplinary proceedings that may result in the cancellation of licences.
Mr Duale added that fraudulent activities witnessed in the defunct National Health Insurance Fund would not be tolerated under SHA.
“Any healthcare provider whose information is used to defraud the authority will be held liable,” the minister said, adding that hospitals would be surcharged for the money already released on false claims.
The Cabinet Secretary said the hospitals are not entitled to receive any amounts from SHA during the time of the investigations.
Reported by George Odiwuor, Collins Omulo and Rushdie Oudia
