A major corruption scandal has hit the healthcare sector, exposing how public money is being stolen through fake medical claims.
Dozens of hospitals, especially Level 4 and Level 5 facilities, have been accused of faking inpatient admissions and filing false claims to the Social Health Authority.
According to an internal report shared by Citizen TV, these hospitals have created a network of fraud that includes turning simple outpatient visits into expensive inpatient claims.
Some patients were admitted when they did not need to be, while others were never there at all ghost patients whose names were used to steal from the government.
It is estimated that around Ksh.100 million has been lost through these fake claims. Some hospitals even claimed to have more beds than they actually do, just to inflate the numbers and steal more.
In one case, a hospital with only 14 beds claimed to have 100. This kind of false reporting has triggered a nationwide response. Health Cabinet Secretary Aden Duale has taken action by shutting down at least 35 hospitals in places like Kisumu, Bungoma, Busia, Kilifi, Mandera, Wajir, and Kajiado. He said this kind of fraud will not be allowed to continue.

Three whistle-blowers have helped expose the scam. They have given statements to the Ministry of Health and explained how some healthcare workers are being pressured to share pre-authorization codes.
These codes are supposed to be used to approve patient treatment but are now being misused to support fake claims. Some patients are also involved by giving their personal hospital codes to help raise false charges.
This illegal practice is now being investigated.
CS Duale has made it clear that any healthcare worker who is helping in this fraud will be punished. He warned that people allowing their codes to be used for stealing public money will be reported to the DCI.
Starting Monday, a number of files from hospitals involved will be handed over to investigators. The Social Health Authority has already suspended services at several hospitals in over 10 counties. At the same time, the Kenya Medical Practitioners and Dentists Council is now working to withdraw licenses of both the hospitals and the medical staff who took part in the fraud.
This scandal shows just how deep corruption has gone in the health sector, and urgent steps are now being taken to protect public funds and restore trust.
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