Busia Senator and activist Okiya Omtatah has urged the Ministry of Health to immediately suspend the Social Health Authority (SHA) following a shocking revelation by Auditor General Nancy Gathungu.
According to the Auditor General, SHA is at the center of a Ksh104 billion corruption scandal, operating as an independent entity that the government neither owns nor controls. This situation has raised serious concerns about the safety of billions of shillings that Kenyans contribute for healthcare services.
In response to these alarming findings, Omtatah has made three key demands to the Health Ministry. First, he wants SHA to be suspended immediately until a full investigation is carried out. Second, he is calling for a complete overhaul of the system to address its deeply rooted operational flaws. Third, he insists that those responsible for the alleged financial mismanagement and corruption be held accountable to prevent further loss of public funds.
“These are not just minor startup challenges,” Omtatah stated. “SHA is experiencing deep-rooted failures that undermine public trust and pose a major risk to the future of Universal Health Coverage in Kenya.”
The senator further warned that allowing the scheme to continue in its current form would be disastrous. He emphasized that millions of Kenyans, who rely on a transparent and accountable healthcare system, are instead being subjected to exploitation by what he described as a corruption network masquerading as healthcare reform.
Omtatah highlighted that the structural weaknesses in SHA have turned it into a dysfunctional system that not only fails to advance universal healthcare but also facilitates large-scale embezzlement of public funds.
In a detailed audit report, Nancy Gathungu disclosed that 2.5% of member contributions were being deducted and placed into an escrow account that lacks transparency and proper oversight. Additionally, the report exposed serious flaws in the system, including uncompetitive procurement processes, unclear payment agreements, and contract terms that are highly unfavorable to the government.
As a result of these revelations, there has been growing public pressure from various stakeholders, including political leaders and civil society groups, calling for the SHA deal to be scrapped and subjected to further scrutiny.
Among those raising concerns is former Law Society of Kenya (LSK) President Nelson Havi, who has claimed that SHA is nothing more than a criminal scheme designed to generate illicit funds, which he alleges are being used by the president to bribe Members of Parliament.
Meanwhile, Cabinet Secretary for Public Service and Human Capital Development, Justin Muturi, disclosed that he had previously warned the public about the questionable manner in which the Ksh104 billion contract was structured and executed.
President William Ruto, however, dismissed claims that the government spent Ksh104 billion to procure the SHA system.
“There is not a single cent from the government that will be used to pay for any system,” Ruto said on Tuesday. “The real issue is that a lot of money from the National Health Insurance Fund (NHIF) was being mismanaged by brokers within the old system.”
Despite the president’s assurances, the controversy surrounding SHA continues to intensify, with increasing demands for accountability and reforms in Kenya’s healthcare financing system.
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