The Social Health Authority (SHA) has suspended Bungoma West Hospital from providing services to its beneficiaries following allegations of suspected fraudulent claims, placing the facility at the center of a widening health sector scandal.
In a formal letter dated March 30, 2026, SHA Chief Executive Officer Dr Mercy Mwangangi informed the hospital that its contract (Ref: CN-49311) has been suspended for 90 days pending investigations.
The suspension follows reports of questionable billing practices, including allegations of submitting claims for services that may not have been performed.
The letter, addressed to the Hospital Administrator at Bungoma West Hospital, stated that preliminary investigations had identified potential breaches of corruption and fraud clauses under the contract.
“Following reports of suspected fraudulent claims practices at Bungoma West Hospital… SHA has identified breaches of GCC Clause 16 (Corrupt and Fraudulent Practices),” the notice read.
It further alleged that the hospital may have submitted “fictitious claims to the Authority,” triggering the suspension.
Effective immediately, the facility has been barred from admitting SHA beneficiaries, submitting claims, or receiving payments during the suspension period. SHA also directed the hospital to transfer all current patients under its cover to nearby contracted facilities.
The Authority emphasized that it will not be liable for any services rendered during the suspension period unless explicitly approved.
Bungoma West Hospital has also been instructed to notify affected beneficiaries and fully cooperate with ongoing investigations.
“The Authority will not tolerate any form of fraud or abuse of public resources. We are taking firm action to protect beneficiaries and ensure accountability in the system,” Mwangangi said.
The suspension comes amid increased scrutiny of healthcare providers under the Social Health Authority, which has been tightening oversight to curb misuse of funds and ensure quality service delivery to Kenyans.
Authorities have not yet disclosed the outcome of the investigations, but the case is expected to have wider implications for healthcare providers contracted under SHA.
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