President William Ruto has strongly refuted claims that his administration spent Sh104 billion on procuring the Social Health Authority (SHA) system. Speaking in Malava, Kakamega, during the burial of the late MP Malulu Injendi, the President clarified that the government would not allocate funds to the SHA system beyond a fee-for-service arrangement. He emphasized that the system is being managed by a consortium of technology firms to eliminate fraud, which had significantly affected the previous National Health Insurance Fund (NHIF).
Ruto highlighted that nearly 40 percent of NHIF funds were lost to fraudulent claims, a loophole that the new system aims to seal. He reiterated that his government is determined to prevent a repeat of such financial mismanagement, ensuring that funds meant for healthcare services benefit Kenyans as intended. According to him, the fraudulent activities within NHIF had allowed unscrupulous individuals to siphon off large sums of money, weakening the efficiency of the health insurance scheme. He assured the public that under his leadership, such malpractice would not be tolerated.
The President further dismissed opposition to the SHA system, arguing that those criticizing it are individuals who previously benefited from NHIF fraud. He stated that such individuals are deliberately spreading misinformation because they do not want a transparent and efficient health insurance system that disrupts their illicit gains. His remarks suggested that powerful vested interests had long taken advantage of loopholes within NHIF and are now resisting the new measures designed to enhance accountability.
Despite Ruto’s reassurances, an audit report by Auditor General Nancy Gathungu raised concerns regarding the governance of the SHA system. The report revealed that the system, which contains sensitive health data of Kenyan citizens, is managed by private entities. It further highlighted that the escrow agent overseeing the project is expected to collect Sh111 billion over ten years. This revelation has fueled skepticism over the degree of government control over the system and whether taxpayers are getting value for money.
The audit also outlined how the consortium running SHA earns revenue through multiple channels. It noted that the companies involved receive 2.5 percent from every member’s contributions, five percent from claims by health facilities, and 1.5 percent for track-and-trace services. These financial arrangements have sparked concerns over the long-term sustainability of the system and whether such deductions will burden Kenyans seeking healthcare services. Additionally, the audit found that the government is barred from developing a competing health system, which raises questions about public sector involvement in managing essential health data and services.
The SHA system has been positioned as a reform measure aimed at improving Kenya’s healthcare financing model. However, the controversy surrounding its implementation continues to generate debate. While the government insists that the initiative will bring transparency and efficiency, critics argue that its control by private firms could undermine public oversight. As discussions around SHA persist, the coming months will likely see intensified scrutiny over the system’s effectiveness, financial implications, and its impact on access to healthcare services across the country.
