President William Ruto has denied claims that the government spent Sh104 billion on acquiring the Social Health Authority (SHA) system, saying the state will not fund it directly. Instead, he explained, SHA operates on a fee-for-service model and is managed by a group of technology firms to prevent fraudulent claims.
SHA Designed to Curb NHIF Fraud
Speaking in Malava, Kakamega, on Tuesday during the burial of former MP Malulu Injendi, Ruto emphasized that SHA was introduced to address fraud in the National Health Insurance Fund (NHIF). According to him, nearly 40% of NHIF funds were lost to fraudulent claims, a problem he vowed to eliminate.
"We want to fix the fraud issue that was there before. Money collected by NHIF was stolen through fake claims, amounting to almost 40% of its funds. That will not happen under my leadership," Ruto stated.
Critics Accused of Benefiting From NHIF Corruption
The President claimed that those opposing SHA are individuals who benefited from NHIF corruption and are now spreading misinformation about the new system.
"Those complaining are the same people who were stealing from us. They don’t want a system that works because they want to continue with their corrupt dealings," he said.
Auditor General’s Report on SHA System
A report by Auditor General Nancy Gathungu revealed that the Sh104 billion SHA system, which holds Kenyans' health data, is controlled by private companies. The report also highlighted that an escrow agent, appointed by both parties, is expected to collect Sh111 billion over ten years.
Additionally, the audit found that the consortium managing SHA earns:
2.5% from every member’s contribution
5% from health facility claims
1.5% for track-and-trace services
The report also noted that the government is restricted from developing a competing system, raising concerns about control and transparency.
While the government insists SHA will help end fraud in public health insurance, critics argue that private firms stand to benefit significantly from its revenues.
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