Hospitals across Kenya are now facing possible shutdowns following stern warnings from both the World Bank and the government regarding misuse of public healthcare funds.
Health Cabinet Secretary Aden Duale has made it clear that the government will not slow down or compromise in its crackdown on medical facilities misusing money from the Social Health Authority (SHA), even as the World Bank calls for reforms in the new health scheme.
In a report released on Tuesday, May 27, the World Bank advised Kenya to review how the SHA programme is being implemented and financed. The financial institution pointed out several weaknesses in the rollout and called for urgent changes to improve the scheme’s effectiveness.
Speaking during a press conference on Wednesday, May 28, Health CS Duale insisted that authorities—led by the Kenya Medical Practitioners and Dentists Council (KMPDC)—will continue their strict operations to eliminate hospitals and health workers involved in fraudulent activities.
According to Duale, this is part of a wider plan to clean up the system and ensure only credible institutions and professionals are allowed to operate under the national health scheme.
Duale went further to say that on Saturday, June 14, he will publicly release a list of all the health facilities that were previously contracted under the now-defunct National Health Insurance Fund (NHIF) and are suspected to have been involved in fraudulent dealings.
He described this list as “the list of shame” and emphasized that the government is committed to exposing and punishing those who misused public funds.
“We have already shut down and downgraded several hospitals that were engaged in fraud under NHIF. We will soon reveal their names to the public,” Duale stated.
He added, “Some facilities in this country are operating without qualified medical workers, and some even claim to have surgeons who don’t exist.
I have detailed reports showing these irregularities, broken down county by county. All healthcare providers must follow the law, or face the consequences.”
To support the cleanup exercise, the Ministry of Health has developed a new system known as “Track and Trace.” This technology will help monitor hospitals and healthcare professionals to ensure they comply with regulations.
The system will be used to identify non-compliant institutions and take appropriate action against them.
Duale stressed that this initiative is vital in strengthening Kenya’s healthcare system and achieving the goal of Universal Health Coverage (UHC).
He stated that once the reforms are fully implemented, only a few hospitals and health workers who operate with honesty and prioritize patient care will remain in the system.
“When this process is complete, only those facilities and medical workers with integrity and genuine concern for their patients will continue operating in Kenya,” said Duale.
In its Public Finance Review (PFR) report, the World Bank also urged the Kenyan government to improve the overall capacity and fairness of the health system.
The report specifically recommended that the government hire more healthcare staff, address shortages, and ensure critical medical equipment and supplies are available—especially in marginalized and underserved areas.
Additionally, the World Bank advised that the government should protect low-income earners working in the formal sector by exempting them from contributing to the Social Health Insurance Fund (SHIF).
The lender further recommended that the government fully cover the contributions for these low-wage earners to avoid placing a financial burden on them.
Meanwhile, the Kenya Medical Practitioners and Dentists Council (KMPDC) also took major action recently.
On Tuesday, May 20, the council’s CEO, Dr. David Kariuki, announced the closure of 511 healthcare facilities across Mandera, Nairobi, and Wajir counties. The decision followed an assessment of 1,525 medical facilities in these regions.
According to Kariuki, the council discovered serious violations. In Mandera, 58 facilities were shut down; Nairobi recorded the highest number at 376, while 77 facilities were closed in Wajir.
An additional 267 health centres were downgraded because they could not provide the full services they were licensed to offer.
KMPDC stated that many of the closed or downgraded clinics had poor infrastructure, lacked clean water, and failed to properly dispose of medical waste.
Others were staffed with unregistered personnel or lacked essential medical equipment. Such conditions not only violated the council’s rules but also posed significant threats to patient health and safety.
The downgraded hospitals were found to be operating without essential items such as medicines, working equipment, and qualified professionals like doctors, nurses, lab technicians, and pharmacists.
These recent actions show the government’s strong determination to reform Kenya’s healthcare system by removing dishonest players and boosting service quality.
However, as the clean-up continues, thousands of hospitals may face closure unless they improve standards and follow all rules.
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