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Massive Fraud Engulfs Kenya’s Pension and Health Systems, Leaving Retirees and Patients Unpaid

An official audit outlines large-scale theft, leaving promised reforms unproven.

Overview

  • A 2024 Auditor General report documented more than 260,000 fraud cases and over 67 billion Kenyan shillings lost between 2013 and 2020 through fake pension payments.
  • Auditors found collusion by senior managers and Treasury staff, with roughly 15,000 people benefiting via duplicate, preretirement or unregistered payouts.
  • Health Cabinet Secretary Aden Duale said 35 hospitals extracted more than $804 million from the Social Health Authority through phantom billing, upcoding and converting outpatient visits into inpatient claims.
  • Retirees report delays, bribe demands and nonpayment, including a case in which teacher Violet Akoth Nyatol lost 2.4 million shillings, while patients like Geoffrey Mwaniki paid out of pocket when the SHA system was reported down.
  • The Treasury pledged to fully digitize pension disbursements from July 1, 2025, yet recovery of stolen funds, timely payments and service access remain unresolved, deepening public distrust.