Fears of widespread job losses have gripped the health sector after President William Ruto revealed that his administration has shut down more than 1,000 medical facilities in a sweeping anti-fraud operation targeting the newly established Social Health Authority (SHA).
Speaking to Kenyans in the UK on Thursday, July 3, Ruto said the crackdown was necessary to protect the integrity of SHA, which replaced the National Health Insurance Fund (NHIF) in October 2024.
“The criminal elements that are staining SHA will not succeed. We have tracked and closed over 1,000 medical facilities engaging in fraud,” said Ruto.
He warned that the purge was far from over:
“More are on the way. Our health programme must remain efficient and incorruptible.”
The president hailed SHA’s achievements, stating that in just eight months, it has reached over 4.9 million Kenyans—surpassing NHIF’s performance over a similar period.
“Our Social Health Authority is working. In eight months, the transformative medical scheme has served more than 4.9 million people, way above what NHIF would have managed,” he noted.
However, the mass closure has raised concerns among healthcare workers and the public, especially with the growing risk of unemployment and reduced access to medical services in already underserved areas.
The announcement follows recent remarks by Defence Cabinet Secretary Aden Duale, who—while addressing stakeholders at Tom Mboya Labour College in Kisumu on June 30—said that 35 private hospitals had been shut for presenting forged documents to gain SHA accreditation or manipulating billing systems.
“Some of these facilities were charging inpatient rates for outpatient services to inflate claims. That is criminal and unacceptable,” Duale said.
The crackdown, though praised for targeting corruption, is also sparking panic over the future of thousands of healthcare jobs and essential services, especially in rural areas where many of the affected clinics operated.
No official figures have been released on how many healthcare workers are now jobless or the exact locations of the closed facilities.
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