SHA Statement on Disbursing KES 20 Million to Nyandiwa Hospital

The Social Health Authority (SHA) has noted with concern a misleading article published on August 22, 2025, alleging that SHA disbursed KShs.20 million to a ghost facility. These claims are false, misleading, and undermine basic principles of responsible journalism such as accuracy, fairness, and balance.

The Facts:

1. 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.

2. In line with standard practice, the hospital retained its existing bank account under the name "Nyandiwa Dispensary" as it transitioned to Level 4. Many facilities across the country that began as dispensaries or sub-district hospitals maintain their original bank account names after upgrading.

3. The disbursement of KShs.19,998,720 represents legitimate and accumulated claims duly processed in line with SHA's strict verification and payment protocols.

4. To date, the facility has received KShs.751,504 under Primary Health Care (PHC) and KShs.82,080,706 under the Social Health Insurance Fund (SHIF), all acknowledged by the facility. These are accumulated payments from October 2024.

5. The abandoned structure shown in the media is one of the incomplete facilities built by a former County administration. It has never been contracted by SHA and has no transacting rights.

6. The public can access all payments made to facilities on the SHA website, which are posted after each disbursement. These are not representative of one month's claims, since the adjudication and verification process is continuous and happens at different stages.

7. The payouts also represent different benefit packages such as inpatient, outpatient, surgical, maternity, dialysis, mental wellness and rehabilitation, medical imaging, and haematology/oncology services and therefore a simple eyeball comparison between one facility and another would lead to inaccurate deduction.

8. Payments under Primary Health Care Fund (PHCF) have already been disbursed. More payments for various packages are expected to be disbursed today and on Monday.

SHA does not and will never disburse funds to non-existent or uncontracted facilities. Every payment is subject to rigorous verification to safeguard public funds and strengthen health service delivery.

We urge media outlets to exercise basic due diligence and fact-checking before publication. A simple verification with SHA or the Homa Bay County Department of Health would have clarified the distinction between Nyandiwa Level 4 Hospital (an operational facility with active claims), and the uncommissioned structure visited by journalists.

SHA calls upon the media outlets to exercise responsible journalism in their reporting. The public deserves accurate information, particularly on matters concerning health financing reforms that are central to advancing universal health coverage in Kenya.

For more information or clarification contact SHA on email: ceosoffice@sha.go.ke, or James Mbaka on 0726 733 119, email: mbaka@p-l.co.ke

Dr. Mercy Mwangangi, CBS
CHIEF EXECUTIVE OFFICER