Health CS Duale orders refunds for unlawful SHA charges

Health Cabinet Secretary Adan Duale has directed hospitals to refund civil servants charged out-of-pocket fees for services covered by the Social Health Authority. The order was issued on June 10 during the SHA rollout in Nairobi. Facilities violating the rules face suspension.

CS Duale warned that any health facility demanding unauthorised cash payments from public officers for SHA-covered services will face immediate suspension and must issue full refunds. He stressed that the era of uncontrolled co-payments is over. The directive follows the finalisation of in-service tariffs and contracts that give SHA a clear reimbursement framework. Duale said SHA will now hold providers accountable to agreed rates, pre-authorisation requirements, and clinical standards. To protect the fund from fraud, SHA has expanded biometric registration to dependents aged 7 to 17. The system, already serving over 25 million registered Kenyans, uses fingerprint and facial recognition through the Practice 360 App and is operational in Level 4, 5, and 6 hospitals.

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Kenya's Ministry of Health has suspended the tariff-locking mechanism in the Social Health Authority (SHA) system amid complaints from civil servants. Health Cabinet Secretary Aden Duale announced the decision on April 23 to ease access to healthcare services.

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Kenya's Social Health Authority (SHA) risks collapse as monthly revenues barely cover expenses, MPs have warned. Dr James Nyikal, chair of the National Assembly's health committee, raised the concerns after an investigative visit to Mombasa.

Four Nairobi Hospital board directors were charged on March 16, 2026, with obtaining over Sh8 million and failing to submit financial statements to the company registrar. They were arrested over the weekend and sought bail, arguing they cannot flee due to their services to Kenyans. President William Ruto has intervened to ensure transparency in the dispute.

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Ombudsman Jesus Crispin Remulla has revealed a kickback scheme in private hospitals involving PhilHealth personnel and fraudulent billings. Patients are told their bills are not covered by PhilHealth, leading them to pay cash, after which hospitals alter receipts to claim PhilHealth payment. He urged patients to file complaints against those involved.

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