The storm over suspected fraud at Kenya’s Social Health Authority (SHA) has deepened, drawing in one of Nairobi’s best-known private hospitals.
Ladnan Hospital, based in Pangani, moved on Tuesday to distance itself from SHA chairperson Abdi Mohamed after claims spread online that the facility had received Ksh66 million in questionable payouts.
In a statement, the hospital said Mohamed no longer had any stake in its operations. “Ladnan Hospital Limited in Pangani is a wholly-owned subsidiary of Metropolitan Hospital Holdings Limited, which is wholly owned by The Metro Group PLC (TMG),” the group said. “TMG is a public unlisted company with over 500 shareholders.”
The hospital confirmed that Mohamed was once a shareholder but sold his stake in July 2023, months before SHA was established. A review of his Facebook page shows he announced the exit himself, writing, “This marks the end of an era for me at Ladnan Hospital, which I co-founded almost 13 years ago.”
The controversy began when SHA published a list of payments to hospitals, showing Ladnan among the largest recipients. The hospital was listed as receiving Ksh52 million — more than two major referral centres, Moi Teaching and Referral Hospital and Kenyatta University Teaching, Referral and Research Hospital.
That disclosure sparked accusations of conflict of interest and corruption. Some reports falsely linked the funds to Mohamed personally, prompting the hospital’s clarification.
Health Cabinet Secretary Aden Duale added fuel to the debate, warning of widespread fraud in the medical insurance industry. He said data from the Association of Kenya Insurers suggested that “30 per cent of medical payouts are linked to fraudulent claims.” Since taking office in April, Duale noted, several institutions have already been shut down.
The crisis intensified on Monday evening when SHA’s payment lists vanished from the internet. The Kenya Master Health Facility Registry, which holds details of accredited hospitals, also went offline. Officials at the Ministry of Health said the ICT Authority had been called in to investigate.
With questions mounting, SHA faces growing pressure to explain how payments were processed and why oversight systems appear to have failed.
For Ladnan, the immediate concern was to clear its name. “Abdi Mohamed has not been involved in the ownership, management, or operations of Ladnan Hospital since July 2023,” the group stressed.
But for Kenyans relying on SHA to protect them from crippling medical bills, the scandal has once again raised the old question: who is really watching the country’s healthcare money?
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