More Twists Over SHA Payments to Ghost Hospitals

Hello and welcome to the Money News RoundUp Newsletter. Today, we are covering the drama over SHA payments to hospitals and layoffs at the WPP Scangroup.

Shutdown of Health Registry Sparks Uproar Amid Scrutiny of SHA Payments to Ghost Hospitals

The Kenya Master Health Facility Registry (KMHFR) hosted on the Ministry of Health’s website was disabled on Monday evening, blocking public access to crucial information about hospitals across the country. 

The registry, which contains data on facility locations, bed capacities, and regulatory oversight, has been instrumental in tracking healthcare services.

As reported in the Standard, its shutdown comes amid growing scrutiny over irregularities in the healthcare sector, including payments to ghost facilities. Some facilities listed as Level 4 reportedly lack inpatient beds or operate from makeshift structures. 

Dr Brian Lishenga, chairperson of the Rural and Urban Private Hospitals Association of Kenya (RUPHA), criticized the move, calling it a violation of the public’s right to access information. He said the shutdown reveals the Ministry of Health’s loss of control over its own data and regulators.

Meanwhile, Health Cabinet Secretary Aden Duale has dismissed allegations circulating on social media that the Social Health Authority (SHA) is disbursing funds to non-existent or non-operational health facilities.

Speaking on Monday, August 25, Duale said the claims were not new and that the ministry was already aware of the information through official regulatory channels.

He clarified that the majority of the facilities being questioned online had been either shut down, suspended, or downgraded by health regulators as early as May.

WPP Scangroup Announces Layoffs

 WPP Scangroup has announced plans to reduce its workforce, days after announcing a half-year loss of Ksh200 million.

The marketing firm noted that the move was aimed at helping the company restructure its operations amid financial pressure on its operations. 

WPP Scangroup interim Chief Executive Officer Miriam Kaggwa told the Business Daily that the notices had been issued to the employees. However, the exact number of employees who will be affected by the redundancies has not been settled on. Currently, the firm has close to 430 workers.

“We have issued notices of redundancies and are currently in the consulting period to determine who we need for the business, not just now but also in the future. I am very confident that the exercise we are going through now will show the benefits, as it will leave us very well-positioned for the future,” the interim CEO stated.

The marketing firm has seen a leadership change recently following the departure of former CEO Patricia Ithau.

Govt Directive on eProcurement to Stall Listing of KPC on NSE

The government's plan to list Kenya Pipeline Company (KPC) on the Nairobi Securities Exchange (NSE) faces further delay as the firm grapples with disruptions caused by a mandatory shift to the Electronic Government Procurement System (e-GPS).

According to Treasury Cabinet Secretary John Mbadi, the requirement has slowed down the process, further expressing that the company risks losing business owing to delays.

The CS noted that KPC already had its own electronic procurement system but is now being forced to abandon it. Mbadi added that since the government plans to sell KPC, requiring a system change now is wasteful, as the company will likely shift again after privatisation.

As reported in the Business Daily, KPC also risks losing Uganda as its client, given that it still uses KPC infrastructure despite ceasing to source fuel products directly from Kenya.

The state hopes to raise close to Ksh100 billion from KPC’s Initial Public Offering (IPO) by the end of 2025.

Kenya Seeks New Loan to Repay Ksh51B Debt from Same Lender

The National Treasury is negotiating a fresh loan with the Trade and Development Bank (TDB) to refinance a Ksh51.6 billion syndicated facility it previously borrowed from the same lender.

As reported by the Business Daily, the loan is due next month. Treasury CS John Mbadi stated that the move is aimed at easing pressure on government revenues by avoiding the need to commit taxes toward settling the maturing debt.

Mbadi stated that if TDB fails to offer competitive terms, Kenya may opt to pay off the loan directly from its revenue. He described the debt as one of Kenya’s largest external obligations and emphasized that refinancing it would help ease the burden of costly commercial loans.

The plan is part of a wider Treasury strategy to restructure Kenya’s debt by lowering interest rates and extending repayment periods. Kenya is also in talks with China to convert dollar-denominated Standard Gauge Railway (SGR) loans into yuan to reduce interest costs. 

Auditor General Flags Ksh2.95B Loan Discrepancies in State Corporations 

Auditor General Nancy Gathungu has raised an alarm over 35 State-Owned Enterprises (SOEs) that continue receiving loans despite unresolved discrepancies totaling Ksh2.95 billion in their existing credit. 

In her 2023/2024 financial year report covered by the People Daily, Gathungu revealed that seven of the SOEs are the worst defaulters, having missed loan repayments between two and eight times since 2011, the year they were expected to begin servicing the loans.

Athi Water Works Development Agency tops the list, having defaulted on eight occasions on a Ksh35.4 billion loan. Central Rift Valley, Coast, and Lake Victoria North Water Works Agencies have each defaulted three times on loans worth Ksh2.79 billion, Ksh2.5 billion, and Ksh4.4 billion, respectively.

 National Water Harvesting and Storage Authority and Water Works Development Agency have missed payments on Ksh1.89 billion and Ksh4.1 billion loans, while Tana Water Works Agency has defaulted once on Ksh3.7 billion.

Brace for Expensive Sugar - Kenyans Warned 

Kenyans have been warned over a surge in sugar prices as the country’s sugar industry faces renewed instability. 

A July 2025 survey by the Central Bank of Kenya (CBK) shows that consumers expect prices to rise further due to factory shutdowns, falling cane deliveries, and uncertainty surrounding the leasing of sugar mills to private operators.

Despite improved supply of other staple foods, sugar prices continue to climb. Cane deliveries dropped to an 18-month low of 383,050 tonnes in May, while sugar production fell to just 32,760 tonnes, the lowest since November 2023. Read more.