The roiling corruption scam engulfing State-backed Social Health Authority (SHA) has taken a fresh twist with a coalition of lawmakers demanding the resignation of Health Cabinet Secretary Aden Duale.

In an announcement on Wednesday, Nairobi Senator Edwin Sifuna, Bomachoge Borabu MP Obadia Barongo, Clive Gisairo (Kitutu Masaba), Tonny Kibagendi (Kitutu Chache South) and Wilber Oundo (Funyula) also called on Dr. Mercy Mwangangi, who is the chief executive of SHA to resign, likening the recent release of millions of money to non-existent hospitals a "well calculated scandal."

The added: "There are facilities that were closed, and they continue receiving money from SHA. For example, Sipili Maternity and Nursing Home, which was shut down following a TV exposé, has received KES5 million."

CS Duale and the SHA executive have found themselves under intense questioning and scrutiny following the authority's announcement on Wednesday last week that it has wired KES3.4 billion to health facilities for Social Health Insurance Fund claims targeting inpatient care, drugs and substance abuse cover, mental wellness, critical care, and surgeries. 

"An additional KES1.09 billion has been disbursed from the Primary Health Care Fund, and an additional KES1.7 billion is in processing for dialysis, oncology and surgical claims," SHA statement signed by Dr. Mwangangi stated.

However, the Authority singled out Nyandiwa Level 4 Hospital in Homabay County noting that the centre received KES19 million for maternity and inpatient services for the period January to July, 2025.

However, a quick scrutiny by members of the public appeared to suggest that Nyandiwa was nothing but a disused centre, complete with overgrown thicket on its compound.

And while SHA has held its stance that the hospital has been there since 1970s, further check on other centres have unraveled a chain of suspect healthcare locations spread across the country that have continued to receive billions of taxpayers’ money. 

“Enough is enough. We demand the immediate resignation of Aden Duale for conflict of interest, and the CEO of SHA for colluding to steal from Kenyans,” the team stated.

The MPs faulted CS Duale for appearing to talk tough in public while corruption was engulfing operations at the ministry he leads.

On Monday, the Ministry of Health momentarily took down a virtual platform where the public could access and analyse substantive amounts of monthly payments made by SHA to healthcare facilities across Kenya, following revelations that some of the centres were ghost locations.

As public anger over the pulling down of the Kenya Master Health Facility Registry (KMHFR) intensified, SHA announced the suspension of 45 health facilities on Tuesday, blaming them of perpetrating claims fraud.

The latest suspension of healthcare centres for various forms of fraud brings to 85 the total number of hospitals blacklisted by SHA so far. A total of 40 healthcare centres were suspended by SHA earlier this month. So far, no one has been arrested or charged with this fraud.

According to CS Duale, medical claims estimated at KES3 billion are under scrutiny for various red flags including missing documents. So far, Health ministry has rejected claims worth KES10.6 billion following moves by unscrupulous hospital officials to falsify records, turn outpatient cases into inpatients while also claiming non-existent procedures.

"Any facility, doctor, or patient found to be involved in fraudulent activities will be held liable and face the full force of the law. We have already initiated the process to recover paid monies and will involve law enforcement to prosecute perpetrators," CS Duale warned on Tuesday.

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