Ghost Hospital Scandal: Sh20 Million Vanishes in Homa Bay

Nyandiwa Health Centre in West Kamagak Ward, Homa Bay County the facility at the heart of the Sh20 million ‘ghost hospital’ scandal.

Kenya’s health sector has once again been thrust into the spotlight after revelations that the Social Health Authority (SHA) wired Sh20 million to what has now been exposed as a “ghost hospital” in Homa Bay County. The funds, which were allegedly allocated for the upgrade of Nyandiwa Health Centre, appear to have been funneled into a non-existent facility, raising serious questions about accountability and financial oversight.

Despite the massive allocation, Nyandiwa remains incomplete and dysfunctional, with the site described by locals as nothing more than a thicket overrun by bushes. Residents who had hoped for improved access to healthcare have been left in shock and despair, branding the transaction the “thicket hospital” scandal. For many, the absence of a functional health centre has meant long journeys to distant hospitals in search of treatment, a painful reminder of the human cost of corruption and mismanagement.

Officials in Homa Bay have raised concerns that the scandal points to deeper systemic failures within SHA’s operations. They fear that the Nyandiwa case could be part of a larger pattern of questionable deals, with millions of shillings potentially lost to similar ghost projects in other counties. This has fueled demands for urgent audits and investigations into how public money is being managed under the authority’s watch.

The public outcry has been swift, with civil society groups and health advocates condemning the misuse of funds meant for essential services. They argue that such scandals undermine trust in government institutions and directly endanger lives, especially in rural communities where access to healthcare remains limited. Local leaders from Homa Bay have also vowed to seek answers in Parliament, insisting that those responsible for approving the Sh20 million disbursement must be held accountable.

This is not the first time Kenya has witnessed ghost project scandals draining public coffers. Analysts warn that without stronger monitoring and enforcement mechanisms, the country’s healthcare reforms will continue to be sabotaged by corruption. As pressure mounts on the Ethics and Anti-Corruption Commission and the Auditor-General to investigate, Kenyans are once again reminded of how easily public trust can be eroded when billions are poured into projects that exist only on paper.

For the people of Nyandiwa, however, the priority goes beyond investigations and political promises. Their greatest need remains a functioning hospital where mothers can give birth safely, children can be treated, and emergencies can be handled. Until then, the Sh20 million “thicket hospital” will remain a bitter symbol of broken promises and the betrayal of public trust.

Reporting by: Babz Abdul Raheem N.
Date: August 22, 2025