President William Ruto has denied allegations that the government spent Sh104 billion on procuring the Social Health Authority (SHA) system, clarifying that no public funds have been allocated for its acquisition.
Speaking in Malava, Kakamega, during the funeral of the late MP Malulu Injendi on Tuesday, Ruto explained that the system is operated by a consortium of technology firms tasked with eliminating fraudulent claims that plagued the now-defunct National Health Insurance Fund (NHIF).
The President defended the SHA system, arguing that NHIF had been riddled with fraud, with nearly 40 per cent of collected funds lost through false claims. He assured Kenyans that this would not happen under his administration.
“Because we want to sort out the problem of fraud of the past. Money that was collected by NHIF was stolen by fraudsters through fraudulent claims which claimed almost 40% of the money that was being raised by NHIF. That will not happen as long as I’m president,” Ruto stated.
He further emphasized that the SHA system will not be paid for by the government but will operate under a fee-for-service model to safeguard citizens’ contributions.
The President dismissed critics of the system, branding them as brokers seeking to protect their interests. He claimed that those opposing SHA are individuals who benefited from corruption in NHIF and are now resisting the reforms to maintain their illicit dealings.
“Those complaining are people who have been stealing from us. They don’t want a system that works because they want to continue stealing from us,” Ruto said.
However, a report by Auditor General Nancy Gathungu raised concerns about the SHA system, revealing that it is controlled by private entities. The report stated that an escrow agent appointed by both parties is projected to collect Sh111 billion over the next decade. The audit also revealed that the consortium managing SHA receives 2.5 per cent from member contributions, five per cent from health facility claims, and 1.5 per cent for tracking and tracing services.
Additionally, the report noted that the government is barred from developing a competing system, raising questions about Kenya’s control over its citizens’ health data.
