35 Hospitals Shut Down in SHA Crackdown Nationwide

Hello and welcome to the Money News Roundup Newsletter, where we are covering the SHA crackdown and President William Ruto's trip to Spain.

Hospitals Shutdown

Health Cabinet Secretary Kipchumba Murkomen on Sunday confirmed that 35 hospitals have already been closed as the Social Health Authority's (SHA) crackdown intensifies across the country.

The CS indicated that the hospitals had been flagged for defrauding the government of up to Ksh100 million through false claims.

How It Happened: Speaking in Kisumu, the CS revealed that whistleblowers had exposed tactics used by hospitals to make fraudulent claims.

The affected hospitals, mostly Level 4 and Level 5 facilities, reportedly exaggerated their bed capacities — for example, claiming to operate 100 beds while actually running only 14.

Other institutions inflated claim amounts by converting outpatient claims into inpatient ones or submitting claims for non-existent patients.

What Duale is Saying: “We have noted with great concern a growing trend of fraudulent activities being perpetrated by some healthcare facilities, healthcare workers, and even patients against the SHA Fund. These actions are illegal, unethical, and a direct betrayal of the trust placed in our health system," Duale stated.

"We are aware of cases where patients share their access codes with hospitals to fraudulently claim services not rendered. That is criminal fraud, and all involved will be prosecuted,” he added.

Catch Up Quick: On Monday last week, the Ministry of Health launched a crackdown targeting employers who had failed to remit their employees' Social Health Insurance Fund (SHIF) deductions. Medical Services PS Ouma Oluga revealed that 12,900 Nairobi employers were found to have defaulted, with the state seeking to recover Ksh21 billion owed. So far, 23 million Kenyans have enrolled with SHA.

Into the Future: Duale assured Kenyans that the door-to-door crackdown, which kicked off in Kajiado County, will continue nationwide to weed out rogue players, noting, "We will not hesitate to take strong and swift action against any individual or institution found culpable." Read more at Citizen Digital.

Here are other business headlines this morning;

Ruto in Spain: Nairobi to Host EBRD's African Headquarters

President William Ruto has welcomed the European Bank for Reconstruction and Development's (EBRD) decision to set up its African continental office in Nairobi. Speaking during the Fourth International Conference on Financing for Development in Seville, Spain, President Ruto termed the move a strategic boost for Kenya's economy, particularly in supporting Micro, Small, and Medium Enterprises (MSMEs) and advancing Public-Private Partnerships. The EBRD also committed to backing Kenya's climate financing efforts and green investment initiatives, with an investor conference planned in Nairobi later this year.

During the sidelines of the conference, President Ruto held talks with EBRD President Odile Renaud-Basso, where both leaders agreed on a structured, long-term engagement aligned with Kenya’s Bottom-Up Economic Transformation Agenda (BETA). The ratification process for the EBRD’s Nairobi office is currently before Parliament.

Separately, Ruto met with Ukrainian Prime Minister Denys Shmyhal and discussed enhancing diplomatic relations, expanding educational opportunities, and addressing food security challenges. The leaders explored ways for Ukraine to leverage Kenya's strategic location, particularly the Port of Mombasa, to improve regional commodity distribution, while also committing to strengthening cooperation in ICT, trade, and global peace initiatives.

Kenya’s Treasury Bill Stock Doubles to Over Ksh1 Trillion

The government’s domestic debt in the form of Treasury bills has nearly doubled over the past year, crossing the Ksh1 trillion mark and signalling a growing liquidity crunch amid underperforming tax revenues. According to Business Daily, the sharp rise in outstanding Treasury bills reflects both the State’s need for short-term financing and increased demand for the securities from institutional investors.

The report notes that unit trusts, pension funds, and the government’s own housing fund have been among the largest buyers, utilizing excess cash to invest in short-term papers.

Six Arrested in Embu Over Looting During June 25 Protests

Six suspects have been arrested in Embu County in connection with looting incidents that occurred during the June 25, 2025, Gen Z-led protests. According to Citizen Digital, the suspects were found in possession of various stolen items believed to have been taken during the chaos, including electronics, clothing, alcohol, and household goods.

Among those arrested are Peter Mugane Kuria, 22, Ian Macharia Wangare, 19, and Joseph Musila Mugo, 45, who was found with a stolen washing machine. Detectives also recovered stolen goods from the homes of other suspects, including whisky, steel wire, computers, and retail products. All six suspects remain in custody and are expected to appear before the Embu Law Courts on Monday, June 30.

Treasury Slashes NG-CDF Allocation by Ksh12 Billion

The National Treasury has cut Ksh12 billion from the national government constituencies development fund (NG-CDF), a key financial kitty managed by Members of Parliament, a report by Business Daily has shown.

The budget cut was part of the third supplementary budget, passed less than two weeks before the close of the current financial year on June 30. As a result, the NG-CDF budget has been reduced from Sh68.2 billion to Sh56.2 billion.