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HomeDaily NewsWednesday, January 28, 2026Kenyan Financial Reports Reveal Sh11bn SHA Loss, Credit Upgrade, and Infrastructure Funding - January 2026
Business & Economy4 stories from 2 sources

Kenyan Financial Reports Reveal Sh11bn SHA Loss, Credit Upgrade, and Infrastructure Funding - January 2026

An audit by Kenya's Ministry of Health has revealed that the Social Health Authority (SHA) lost Sh11 billion due to fraudulent claims from private hospitals. Separately, Tower Sacco revealed a loss of Sh149.5 million in cash deposits held at the embattled Kenya Union of Savings and Credit Cooperatives (KUSCCO) amid a mismanagement scandal. In other financial news, Moody’s Ratings has upgraded Kenya’s sovereign credit rating from B3 to Caa1, reflecting a decline in the country’s near-term default risk. Additionally, Kenya is funding the rehabilitation of the Mombasa Road with Sh4.5 billion from securitised Roads Maintenance Levy (RML) funds, part of a larger Sh21 billion allocation.

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Wednesday 2:00 PMCapital Business

Audit: Fake claims cost SHA Sh11bn in losses

Audit: Fake claims cost SHA Sh11bn in losses

An audit by Kenya's Ministry of Health has revealed that the Social Health Authority (SHA) lost Sh11 billion due to fraudulent claims, primarily from private hospitals operating under the Universal Health Coverage (UHC) scheme. The government plans to recover these funds.

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Key Highlights

An audit by Kenya's Ministry of Health has revealed that the Social Health Authority (SHA) lost Sh11 billion due to fraudulent claims, primarily from private hospitals operating under the Universal Health Coverage (UHC) scheme. The government plans to recover these funds.

  • The audit, conducted between October 2024 and April 2025, found that hospitals falsely converted outpatient services to inpatient admissions for higher payouts and billed for services never rendered.
  • Health Cabinet Secretary Aden Duale handed over 1,188 case files to the Directorate of Criminal Investigations (DCI) last September, citing widespread fraud including upcoding and phantom billing.
  • Of these, 190 files involved 24 facilities with conclusive fraud evidence, 61 under investigation, and 105 closed by the Kenya Medical Practitioners and Dentists Council (KMPDC).
  • The SHA has flagged over Sh10.6 billion in fraudulent claims, resulting in over 40 facilities suspended and at least 31 hospitals shut down.
Wednesday 9:05 AMCapital Business

Moody’s upgrades Kenya’s credit rating on lower default risk

Moody’s upgrades Kenya’s credit rating on lower default risk

Moody’s Ratings has upgraded Kenya’s sovereign credit rating from B3 to Caa1. This upgrade reflects a decline in the country’s near-term default risk, supported by stronger external liquidity and improved access to international capital markets.

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Key Highlights

Moody’s Ratings has upgraded Kenya’s sovereign credit rating from B3 to Caa1. This upgrade reflects a decline in the country’s near-term default risk, supported by stronger external liquidity and improved access to international capital markets.

  • Kenya's international reserves rose to $12.2 billion by the end of 2025, equivalent to 5.3 months of import cover.
  • The current account deficit narrowed sharply to 1.3 percent of GDP in 2024.
  • Kenya raised $3 billion through Eurobond issuances in 2025, using part of the proceeds to buy back $1.2 billion of bonds maturing between 2026 and 2028.
Wednesday 12:00 PMCapital Business

Tower Sacco reveals Sh150mn cash deposit losses in KUSCCO

Tower Sacco reveals Sh150mn cash deposit losses in KUSCCO

Tower Sacco has revealed a loss of Sh149.5 million in cash deposits held at the embattled Kenya Union of Savings and Credit Cooperatives (KUSCCO). This comes amidst a major financial mismanagement scandal uncovered by a forensic audit at KUSCCO, affecting numerous Kenyan Saccos.

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Key Highlights

Tower Sacco has revealed a loss of Sh149.5 million in cash deposits held at the embattled Kenya Union of Savings and Credit Cooperatives (KUSCCO). This comes amidst a major financial mismanagement scandal uncovered by a forensic audit at KUSCCO, affecting numerous Kenyan Saccos.

  • A PricewaterhouseCoopers (PwC) audit indicated approximately Sh13.3 billion was lost through fraud and mismanagement at KUSCCO.
  • Several other SACCOs, including Afya Sacco (Sh361.6 million), Mhasibu Sacco (Sh13 million), and KMA Sacco (Sh525 million), have also written off millions due to the scandal.
  • Despite these losses, Tower Sacco's profit after tax increased to Sh1.1 billion in 2025, up from Sh848.9 million in 2024.
Wednesday 8:38 AMNation BusinessFirst

Sh4.5bn in securitised cash funds Mombasa road works

Sh4.5bn in securitised cash funds Mombasa road works

Kenya is funding the rehabilitation of the Mombasa Road section damaged during the Nairobi Expressway construction with Sh4.5 billion from securitised Roads Maintenance Levy (RML) funds. This amount is part of a larger Sh21 billion allocated for critical road projects.

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Key Highlights

Kenya is funding the rehabilitation of the Mombasa Road section damaged during the Nairobi Expressway construction with Sh4.5 billion from securitised Roads Maintenance Levy (RML) funds. This amount is part of a larger Sh21 billion allocated for critical road projects.

  • A total of Sh4.5 billion is being used to rehabilitate the Mombasa Road section from Mlolongo to ABC Place in Westlands.
  • The acting Director General of the Kenya Roads Board (KRB), Martin Agumbi, confirmed the funding, which comes from the securitisation of Sh7 per litre of the RML.
  • The allocation is half the Sh9 billion previously stated by former Cabinet Secretary for Roads, James Macharia, for the project, which is being undertaken by China Roads and Bridge Corporation (CRBC).
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