Fresh controversy has erupted in Homa Bay County after revelations that Nyandiwa Level 4 Hospital—listed by the Social Health Authority (SHA) as a beneficiary of Ksh20 million in August disbursements—has allegedly never been operational.
Residents living near the facility claim the hospital has remained shut for decades, forcing them to seek medical care in Rachuonyo and other towns.
“That is a surprise and breaking news to me. It is very concerning that the hospital is receiving funds, yet we have never seen it working. This is a waste project,” one resident told journalists.
Another added: “What the government should do is open the hospital so that it can start operating. It would be very beneficial to us who live near it.”
The uproar followed the release of SHA’s official funding list, which showed Nyandiwa Level 4 Hospital among the institutions allocated Ksh20 million this month. Soon after, photos and videos circulated online depicting the hospital in a dilapidated, unused state, fuelling speculation over mismanagement of funds.
In a swift response, SHA CEO Mercy Mwangangi dismissed the reports, insisting that the facility has been operational since the 1970s.
“The Social Health Authority (SHA) has noted with concern a misleading article published on August 22, 2025, alleging that SHA disbursed Ksh20 million to a ghost facility. These claims are false, misleading, and undermine basic principles of responsible journalism, such as accuracy, fairness, and balance,” she said in a statement.
However, Health Cabinet Secretary Aden Duale appeared to contradict SHA’s position, telling NTV that the hospital’s inclusion in the funding list may have been an “error.”
The Rural and Urban Private Hospitals Association, which has long complained about unpaid dues from the defunct NHIF, seized on the incident to highlight what it termed as “systemic failures” within SHA’s management.
With government officials, SHA, and local residents offering conflicting accounts, questions remain over the true status of Nyandiwa Level 4 Hospital—and the fate of the millions of shillings allocated to it.