SHA CEO MERCY MWANGANGI addresses Ksh 19 million disbursement to ‘ghost hospital’ in Homa Bay



Friday, August 22, 2025 - The Social Health Authority (SHA) has dismissed reports claiming that it disbursed Ksh19 million to Nyandiwa dispensary, a facility alleged to be non-existent in Homa Bay County.

In a statement on Friday, August 22, SHA Chief Executive Officer Dr. Mercy Mwangangi said the reports were “false and misleading,” clarifying that Nyandiwa dispensary was upgraded decades ago into Nyandiwa Level 4 Hospital, which remains operational to date.

“Nyandiwa Level 4 Hospital, Gwassi, Suba South, Homa Bay County, has been operational since the 1970s.”

“The facility was formerly Nyandiwa Dispensary and was subsequently upgraded to a Level 4 hospital,” said Dr. Mwangangi.

She explained that the hospital still operates under its original bank account name - “Nyandiwa Dispensary” - a common practice among upgraded facilities nationwide.

Addressing images circulated online showing a deserted building labeled Nyandiwa dispensary, Dr. Mwangangi clarified that the structure is an incomplete project by a former County administration.

“It has never been contracted by SHA and has no transacting rights,” she said.

The CEO confirmed that the hospital legitimately received Ksh19.9 million in accumulated claims, in addition to Ksh751,504 under the Primary Health Care fund and Ksh82 million through the Social Health Insurance Fund (SHIF).”

“All payments undergo strict verification to safeguard public funds. SHA will never disburse money to non-existent or uncontracted facilities,” she emphasized, urging the public to verify payments on the authority’s website.

The clarification followed online uproar after Kenyans shared photos of a closed health center.

On August 20th, SHA disbursed Ksh3.4 billion to facilities nationwide for inpatient and outpatient services, drug abuse cover, mental wellness, critical care, and surgeries.

An additional Ksh1.09 billion was released under the Primary Health Care Fund.

The Kenyan DAILY POST 

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