A section of Members of Parliament (MPs) allied to the Kenya Moja caucus has called for the immediate resignation of Health Cabinet Secretary Aden Duale, Social Health Authority (SHA) board chair Dr Mohamed Abdi, and CEO Dr Mercy Mwangangi over alleged multi-billion-shilling fraud at the Social Health Authority.

The lawmakers led by Nairobi senator, Edwin Sifuna,  accuse CS Duale of conflict of interest and complacency, saying he has resorted to “media theatrics” to suspend health facilities while presiding over systemic looting. 

They’ve further  linked  SHA board chairperson, Dr Abdi to Ladnan Hospital, which they claim has reportedly benefited from irregular payments, and accused Dr Mwangangi of facilitating the alleged theft of public resources.

“CS Duale must go. First, for conflict of interest. Second, for complacency. And third, for trying to hoodwink Kenyans with media theatrics,  summoning cameras to harass and suspend facilities while putting up a tough face to mask the rot,” the MPs said in a press statement read by Kitutu Chache South MP Antony Kibagendi.

“We demand the immediate resignation of the SHA chairman, who is directly associated with Ladnan Medical Facility, and the CEO, who has been complicit in facilitating this theft,” they added.

Present were Nairobi Senator Edwin Sifuna, Funyula MP Wilberforce Oundo, Kitutu Masaba MP Clive Gisairo, and Bomachoge Borabu MP Obadiah Barongo.

“We want to tell the Head of State and his friend, CS Duale, that Kenyans have now unearthed the scam you carefully schemed to impose on the public. Both the National Assembly and Senate Health Committees are already probing this matter, and when Parliament resumes from recess, we will push for the formation of a Commission of Inquiry to establish how much money has been looted under these schemes,” they added.

This even as the lawmakers  accused the Ministry of Health of presiding over what they termed a “grand, calculated theft under the guise of universal healthcare,” demanding accountability over billions allegedly lost at the Social Health Authority (SHA).

The MPs alleged that they had raised red flags from the outset, warning that SHA was rushed, opaque, and riddled with questionable procurement decisions.

“Why spend Ksh104 billion on a system with no clear state ownership when upgrading NHIF’s existing platform would have cost only Ksh 700 million?” the legislators posed.

They accused the Ministry of running a multi-billion shilling fraud through SHA, claiming the agency is riddled with ghost facilities, irregular payments, and conflicts of interest involving senior officials.

The MPs have also linked the health boss to the company contracted to manage SHA’s revenue collection system.

The MPs cited several facilities allegedly paid millions despite being non-existent or closed. These include Divine Sparkle Medical Center in Homa Bay, which received Ksh 2.8 million despite not existing; Hanano Nursing Home, paid over Ksh 4 million; and Sipili Maternity and Nursing Hospital, shut down three years ago after a TV exposé but allegedly paid close to Ksh 5 million.

They also questioned the rapid rise of accredited health centres in parts of North Eastern, where the number ballooned from 153 to more than 700 in under a year. 

Among the biggest beneficiaries, they said, were newly registered entities such as Wante Nursing Home Ltd, incorporated in February 2025, approved the next day, and by April had received Ksh 3.8 million despite lacking a physical location.

The legislators further warned that SHA’s financial collapse is unfolding faster than its predecessor, the National Health Insurance Fund (NHIF).

“When NHIF was scrapped, it had arrears of Ksh 32 billion. In just 10 months, SHA has accumulated Ksh 43 billion in unpaid claims. The total debt now stands at a staggering Ksh 75 billion,” they said.

The MPs also described SHA as a scam designed to loot public funds, pointing to duplication of facility names, arbitrary rejection of claims from genuine providers, and intimidation of facilities that raise complaints.

“We warned from the beginning that SHA was rushed, opaque, and financially questionable. Today, it is clear SHA is not a reform,  it is a scam,” they declared.