A Tussle for Trust: SHA's Fight Against Fraud Amidst Allegations of Mismanagement

SHA CEO Mercy Mwangangi claims KSh 10.6 billion in fraudulent claims have been blocked. We analyze the crackdown, ongoing fraud allegations, and what it means for the promise of universal healthcare in Kenya.

Pauline Afande
August 29, 2025

Mercy Mwangangi Officially Takes Over as SHA CEO. Photo Courtesy

The Social Health Authority (SHA), the cornerstone of President William Ruto's universal healthcare vision, continues to be a central talking point in Kenya. While the authority's leadership has been aggressively defending its integrity, it faces a torrent of allegations regarding mismanagement and corruption.
This high-stakes battle for public trust has pitted the SHA's official narrative against a deeply rooted skepticism from a public weary of broken promises and systemic fraud in the health sector.
SHA's Bold Claim: A Crackdown on Fraud
In a significant move aimed at restoring public confidence, Social Health Authority CEO Dr. Mercy Mwangangi recently announced that the authority has successfully blocked a staggering KSh 10.6 billion in fraudulent claims. This action, she stated, is a testament to the SHA's commitment to transparency and its rigorous claims review process. According to the authority, a total of KSh 82.7 billion in claims have been submitted under the new Social Health Insurance Fund (SHIF). Of this, KSh 53 billion has been paid, with another KSh 6.4 billion approved and pending settlement.
Mwangangi detailed the most common reasons for the rejected claims, which include upcoding of services, phantom billing, and a mismatch between services claimed and those actually offered. The crackdown has been swift, with dozens of health facilities and a number of health professionals being temporarily barred from billing the SHA for their alleged involvement in fraudulent activities. This aggressive stance is a clear signal from the SHA that it is actively using its new legal framework to fight malpractice in the sector.
The Other Side of the Story: A Crisis of Confidence
While the SHA's crackdown is a positive development, it has done little to quell the public's deeper concerns. The authority has been embroiled in controversy since its chaotic rollout, with allegations of billions of shillings being paid to "ghost hospitals" and a general lack of transparency.
. Critics, including the Kenya Moja political movement, have called for the immediate resignation of Health Cabinet Secretary Aden Duale and Dr. Mwangangi, accusing them of presiding over a "well-calculated scandal."
A recent report by the Rural and Urban Private Hospitals Association of Kenya (Rupha) highlights a concerning decline in the SHA's performance, citing a drop from 46% to a mere 44% in its early months. This poor grade is attributed to inconsistent and delayed payments to healthcare providers, particularly smaller clinics, which are struggling with financial instability. The SHA also inherited a substantial KSh 30.9 billion debt from the now-defunct NHIF, further straining its resources and casting doubt on its long-term sustainability.
These concerns suggest that the SHA's challenges go beyond individual cases of fraud. The public is questioning whether the new system is truly functional or if it is merely a rebranding of the very problems it was meant to solve. The perception of an opaque process, a lack of public participation in its early stages, and a perceived disconnect between the government's promises and the on-the-ground reality has created a significant trust deficit.
Looking Ahead: The Ultimate Test of Accountability
The fight against fraud is crucial, but for the SHA to truly succeed, it must address the fundamental issues of transparency and accountability. Its leaders must do more than just announce a crackdown on fraudulent facilities; they must also address the allegations of mismanagement and explain how they plan to bridge the gap between their ambitious vision and the operational chaos that has defined the rollout so far.
The future of Kenya's universal health coverage hinges on the SHA's ability to prove its effectiveness and win the public's trust. The ongoing struggle is a clear indication that a name change is not enough to fix a broken system; it requires a deep and unwavering commitment to integrity, efficiency, and public service.
What do you think? Do you believe the SHA's recent actions are enough to restore confidence in the new healthcare system? Share your thoughts below.

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