- Senior Counsel Paul Muite criticized the government for its silence on the massive allegations of fraud in the Community Health Authority
- Muite’s comments follow reports that SHA lost about KSh 11 billion due to alleged fraud between October 2024 and April 2025
- Health Minister Aden Duale acknowledged the height of misconduct, revealing deliberate fraud such as fake enrollment and enhanced procedures
- Muite lamented the lack of arrests of prominent figures, questioning why responsibility has not yet been discovered
Senior Counsel Paul Muite has launched a scathing attack on the government over what he describes as a worrying silence following the massive fraud allegations at the Community Health Authority (SHA).
Source: Facebook
The veteran lawyer has said that the much-lauded health reforms are benefiting looters rather than ordinary Kenyans.
Has the SHA been successful?
Muite’s remarks, made on Thursday, January 29, came amid new revelations that billions of shillings were lost through alleged fraud under the new health financing system.
The prominent lawyer questioned why, despite the magnitude of the alleged theft, no arrests of high-profile figures or strong action followed.
Muite questioned why, despite the heavy losses, there were no arrests or strict action against those involved.
His criticism was based on a familiar pattern in public scandals: large sums of public money are lost, investigations are announced, but accountability never follows.
“There are no arrests; it’s just awful silence from those in power. What else do you need to know to find out who the looters are? 11B, along with 103B of the stolen SHA program before launch. SHA is working, we keep being told; yes, it’s working for the looters,” he said.
How high is the decay in SHA?
His criticism followed a report showing that the Community Health Authority lost approximately KSh 11 billion due to fraud between October 2024 and April 2025.
According to a Ministry of Health audit cited in the report, private hospitals accounted for the majority of the false claims, raising serious questions about the governance, accountability, and integrity of Kenya’s universal health care program.
Cabinet Minister for Health Aden Duale he admitted that the six-month period marked the peak of misconduct within the system, describing it as the time when the actual theft took place.
He said the government has since taken action to recover the money through refunds and strict controls, stressing that the losses will not be ignored.
Duale noted that although fraud was more prevalent in private facilities, it was not limited to them, noting that referral hospitals were also involved, with several claims being rejected, while religious institutions recorded the lowest rejection rates.
He said hospital owners had previously made huge profits under the defunct National Health Insurance Fund and warned that such practices would not be tolerated under SHA.
When he took over the Ministry of Health, Duale said he was surprised why it got the nickname “Mafia House.”
Source: Facebook
However, Duale admitted that within a few weeks, he understood the depth of the corruption, saying that many of the scams involved deliberate fraudulent claims, including converting outpatient services to inpatient admissions to attract large payouts.
Under this procedure, patients who should have been treated and discharged were admitted without a medical reason.
In some cases, hospitals billed SHA for procedures that were never performed or inflated the cost of the treatment provided.
Duale also disclosed that some health workers went so far as to register as patients and submit false claims through the system, leading to the closure of affected facilities.
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