KNH plunges into 'technical insolvency', debt chaos, pension crisis and revenue leakages: Audit report

The most alarming revelation is the hospital's descent into what the auditor-general describes as "technical insolvency". For the fourth year in a row, Kenyatta National Hospital (KNH) has spent more than it earned. In 2024/25, it spent Sh2.6 billion, Sh2.3 billion more than the Sh299,708,000 in the previous financial year.

While the hospital reported earning over Sh9.5 billion from medical services, audit teams discovered Sh188.8 million in revenue that was never officially receipted. This lack of documentation makes it impossible to confirm if the income reported is accurate or complete. Further, there is a major disagreement regarding what the hospital owes its suppliers. KNH records show a debt of only Sh6.7 million to the Kenya Medical Supplies Authority, but medical supplier's own records claim the hospital owes them over Sh117 million. This unexplained variance of Shs110 million raises serious questions about how KNH tracks its liabilities.