Kenya’s health sector is once again at the center of a storm following claims that billions of shillings have been funneled to non-existent “ghost hospitals,” while genuine facilities remain starved of funds under the new Social Health Authority (SHA).

Private hospitals under the Rural and Urban Private Hospitals Association of Kenya (RUPHA) say more than 600 health facilities have gone unpaid for months, with some surgical claims dating back to November 2023.

According to RUPHA chairperson Dr. Brian Lishenga, politically connected individuals are hand-picking which hospitals receive payments, with some facilities allegedly paying their way into SHA’s good books.

“Payments are not processed fairly. They go to those politically right, connected, or willing to pay the highest price,” he said.

Lishenga accused SHA of undermining the government’s digital reforms, noting that instead of efficiency, corruption and favoritism have taken root. He further alleged that while billions have been released to ghost facilities, genuine claims worth more than Sh93 billion remain stuck in “review” or outrightly rejected.

So far, SHA has approved Sh90 billion in claims but only released Sh15 billion, leaving hospitals in crisis. “The outstanding liability has already overtaken the historical debt left behind by NHIF,” Lishenga warned.

Kenyans online have been quick to flag suspicious payments.

Nyandiwa Dispensary in Homa Bay, said to be non-operational, reportedly received Sh19.9 million.