Kenya Moja MPs Call for Duale and SHA Officials to Resign Amid Fraud Allegations

A group of Kenya Moja coalition lawmakers has called for the immediate resignation of Health Cabinet Secretary Aden Duale and Social Health Authority (SHA) board chair Mohamed Abdi over alleged financial misconduct and mismanagement within the SHA.

Speaking at Parliament Buildings on Wednesday, the legislators accused CS Duale of conflict of interest and attempting to shield the Authority from scrutiny through what they described as media-driven tactics. Nairobi Senator Edwin Sifuna and Kitutu Chache South MP Antony Kibagendi led the group, criticising Duale for focusing on public relations instead of addressing governance failures. 

“CS Duale must go. First for the conflict of interest, for complacency, and for trying to hoodwink Kenyans with media theatrics,” said Kibagendi.

The lawmakers also demanded the resignation of SHA board chair Mohamed Abdi and called for a Commission of Inquiry to be established within 48 hours to investigate the Authority’s operations. They raised concerns about the rushed transition from the National Health Insurance Fund (NHIF) to SHA, claiming it was carried out without adequate oversight or safeguards, leading to irregular procurement and questionable financial decisions.

Central to the allegations is the reported expenditure of Sh104 billion on a digital health system whose ownership remains unclear. The legislators argued that upgrading the existing NHIF system would have cost about Sh700 million, significantly less than what was spent under SHA. Duale has also been linked to the company that developed the new system, while Abdi is alleged to have ties to Ladnan Hospital, which reportedly received Sh66 million through the scheme.

The group cited several instances of disbursements made to non-existent or inactive health facilities. Divine Sparkle Medical Centre in Homa Bay, for example, was said to have received Sh2.8 million despite not being operational. Other facilities, including Hanano Nursing Home and Sipili Maternity and Nursing Hospital, both previously shut down or flagged for malpractice, allegedly received substantial funds. 

Wante Nursing Home Ltd, incorporated in February and approved a day later, had reportedly received Sh3.8 million by April despite having no physical premises. In the North Eastern region, the number of accredited facilities reportedly jumped from 153 to over 700 within one year. Some facilities, such as Qarsadamu Medical Centre Ltd and Qarsadamu Dispensary, appeared to have duplicate entries, raising suspicions of manipulated data used to make fraudulent claims.

The lawmakers also expressed concern over SHA’s growing financial liabilities. Within ten months of operation, the Authority is reported to have accumulated Sh43 billion in unpaid claims, already exceeding the Sh32 billion debt carried by NHIF at the time of its dissolution. SHA’s total debt is now said to stand at Sh75 billion.

The MPs said they will pursue the matter further when Parliament resumes next month, with plans to summon Duale for questioning.