Kenya Combats Insurance Fraud with Biometric Patient Verification Return

Published Date : 8/6/2025 

The Kenyan government has relaunched a biometric system for patient identification at health facilities to combat insurance fraud and enhance efficiency. This move, spearheaded by the Social Health Authority (SHA), aims to save billions of Shillings lost to fraudulent claims. 

The Kenyan government has relaunched a biometric system for the identification of patients at health facilities as part of efforts to save money from health insurance fraud, which has plagued the country for a long time. The system was recently reintroduced by the country’s Social Health Authority (SHA), which replaced the National Health Insurance Fund (NHIF).

Speaking about the move, Health Secretary, Aden Duale, said it will be a game-changer in terms of fighting corruption and enhancing efficiency, Nation reports. A biometric patient identification system existed under the NHIF, with many Kenyan hospitals spending huge sums of money on biometric verification equipment. However, the system was soon discontinued after the government exposed a fraudulent ring that exploited the system, sometimes through stolen biometrics, causing the state to lose billions of Shillings.

A One-Time Password (OTP) system was introduced as an alternative, but it didn’t work as several complaints emerged pointing at delays and other major shortcomings. Now, the government believes going back to the biometric system will enable the state to effectively fight insurance fraud and save money that was being lost to underserving insurance claims.

President William Ruto also spoke about the issue, saying the biometric identification system, which has been rolled out in Level 4, 5, and 6 hospitals, will ensure people don’t bring forth false insurance claims. “Today, the Minister of Health, Mr. Duale, is launching the biometric identification of Kenyans at Level 4, Level 5, and Level 6 hospitals. This means citizens seeking treatment will now be reliably identified using biometrics. The goal is to eliminate fraud and fake claims, which have plagued our healthcare system for far too long,” Ruto said.

“Each person will have their own record. You’ll place your fingerprint, and we’ll know exactly who you are. Then we’ll proceed accordingly. There will be no more cases of impersonation or people collecting money dishonestly,” he added, recalling the colossal sums of money which the NHIF paid to fake claims monthly. The president cited an example of a hospital where such fraudulent insurance claims happened.

“Take, for example, the hospital in Eldoret. It had many fake doctors and accountants whose job was to bribe NHIF officials. In that hospital, a single leg surgery would be claimed ten times,” he said. “Someone would die, they’d claim they cut the leg, and we pay them. Then again, they die, another leg is cut, we pay them. You even start wondering, how many legs did this person have?” Ruto said jokingly.

The new measure, which takes effect immediately, means that all SHA insurance claim approvals will henceforth require fingerprint authentication. 

Frequently Asked Questions (FAQS): 

Q: What is the main purpose of reintroducing the biometric patient verification system in Kenya?

A: The main purpose is to combat insurance fraud and enhance efficiency in the healthcare system, saving the government billions of Shillings lost to fraudulent claims.

Q: Which organization is responsible for the reintroduction of the biometric system?

A: The Social Health Authority (SHA) is responsible for the reintroduction of the biometric system, replacing the National Health Insurance Fund (NHIF).

Q: What issues did the previous One-Time Password (OTP) system face?

A: The OTP system faced issues such as delays and other major shortcomings, leading to dissatisfaction and inefficiency.

Q: How does the biometric system work to prevent fraud?

A: The biometric system uses fingerprint authentication to reliably identify patients, ensuring that each person has their own record and preventing impersonation and dishonest claims.

Q: What types of hospitals will implement the biometric system?

A: The biometric system will be implemented in Level 4, Level 5, and Level 6 hospitals across Kenya. 

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