The Social Health Authority (SHA) has dismissed reports alleging it disbursed Sh20 million to a non-existent health facility in Homa Bay, terming the claims misleading and irresponsible.

In a statement issued on Friday, the Authority's Chief Executive Officer, Mercy Mwangangi, clarified that Nyandiwa Level 4 Hospital in Gwassi, Suba South Constituency, is a fully operational facility that has been in existence since the 1970s.

It was formerly Nyandiwa Dispensary before being upgraded to a Level 4 hospital.

Mwangangi explained that the hospital retained its original bank account name, “Nyandiwa Dispensary,” during the transition, a practice common among many health facilities across the country.

According to the authority, the disbursement of Sh19,998,720 represented legitimate accumulated claims that were duly verified and processed under SHA’s payment protocols.

"To date, the facility has received Sh751,504 under Primary Health Care (PHC) and Sh82,080,706 under the Social Health Insurance Fund (SHIF), all acknowledged by the facility. These are accumulated payments from October 2024," said Mwangangi.

Mwangangi clarified that an abandoned structure shown in media reports was one of the incomplete projects by a former county administration.

She stated that the building has never been contracted by SHA and has no rights to transact.

“All payments to health facilities are subject to rigorous verification to safeguard public funds and strengthen health service delivery,” she said, adding that the public can access details of all disbursements on its website.

SHA further explained that payouts represent a variety of benefit packages, including inpatient, outpatient, surgical, maternity, dialysis, mental wellness, rehabilitation, medical imaging, and oncology services.

Mwangangi stated that the authority has ethical principles, adding that all payments are subject to rigorous checks to protect public resources.

“SHA does not and will never disburse funds to non-existent or uncontracted facilities,”  she said.

“Every payment is subject to rigorous verification to safeguard public funds and strengthen health service delivery.”

The SHA boss also cautioned that comparing facilities based on disbursement figures alone could lead to inaccurate conclusions, urging media outlets to verify facts before publication to avoid misleading the public on sensitive health financing reforms.