FRESH DETAILS EMERGE ON NYANDIWA 'GHOST' HOSPITAL THAT WAS PAID KSH 20M CLAIMS BY SHA

Fresh details have emerged about the Nyandiwa “ghost” hospital that has dominated news headlines after claims that the Social Health Authority (SHA) wired Ksh 20 million to its account. Speaking in an interview with NTV on Friday, August 22, 2025, residents of Homa Bay County revealed that the facility has not been functional, despite SHA’s insistence that it has been operational.
The residents claimed they had never received services from the hospital since its establishment and were shocked to learn that SHA had reportedly paid Ksh 20 million to the facility. “That is a surprise and breaking news to me. It is very disturbing. How is it being funded, and for what purpose? When we talk about funds, we don’t expect to see the cash—we expect to see a working hospital. This is a wasteful project,” one resident said.
Another resident urged the government to open the hospital, stating that its operations would bring services closer and even present job opportunities to the locals. “I can tell the government to open this hospital so that it can operate. Even we, who live nearby, can help in small ways—like cleaning the hospital if given a chance. Instead, the government is wasting money while the facility remains closed,” the resident said.
A third resident expressed disappointment, recalling the hope the project once inspired. “I saw the hospital being built, and I was very happy. I had high hopes for our children who studied and could have found jobs here. But since its construction, nothing has happened. We don’t see any staff working here. Our children are still unemployed, and this hospital could have provided them opportunities, but it has failed us,” another resident said.
The residents’ reactions come after SHA CEO, Dr. Mercy Mwangangi, denied reports that the Authority disbursed Ksh 20 million to a non-existent “ghost” hospital in Homa Bay County.
She clarified that the funds were paid to Nyandiwa Level 4 Hospital, a functional facility that has been operational since the 1970s in Suba South, Homa Bay.
According to SHA, the payment of Ksh 19,998,720 represents verified and accumulated claims for services such as inpatient care, maternity, and other medical packages, all processed under strict verification protocols.