Senator Kavindu questions the operations of the Social Health Authority conducted by private individuals

Wednesday, 19 March, 2025

Senator Kavindu questions the operations of the Social Health Authority conducted by private individuals 

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Sen. Agnes Kavindu (Machakos) has questioned the operations of the Social Health Authority being conducted by private individuals.

This development came after it emerged that the Health Care Insurance Fund Digitization System under SHA was being run by private individuals.

While seeking a Statement from the Standing Committee on Health earlier today, Senator Kavindu asked the Committee to explain the reasons why Kenyans' health data is being held by private individuals and tasked it to find out whether the tendering process of the Health Care Insurance Fund Digitization System under the Social Health Authority (SHA) was transparently conducted.

โ€œThe Committee must tell us reasons for the non-disclosure of the control charges fees of 2.5% on members' contributions, claims from health facilities of 5%, and track-and-trace solution at a rate of 1.5% for ten (10) years with a projected revenue to the Consortium of KES.111 billion,โ€ said the Machakos Senator.

She tasked the Health Committee to highlight why the contract signed between the government and the Consortium bars the government or any other person from employing alternative systems and sought to be furnished with the details of the signatories to the account in the contract agreement.

โ€œThe Health Committee should explain to the Senate why there have been transfers of funds to an Escrow account on a daily or weekly basis. In the contract agreement, Kshs7 billion is set aside for training, support and customer education. How many health workers have been trained on the system and which mode of training led to arriving at the said cost,โ€ she queried.

The former Building Bridges Initiative (BBI) taskforce member disclosed that the contract signed between the Government and the private individuals requires that any dispute arising to be resolved by arbitration under the rules of the London Court of International Arbitration which is contrary to the provisions of the Public Procurement and Disposal Act.

The Health Committee will subsequently conduct investigations and provide the Senate with the reasons for the non-accessibility, by the Controller of Budget, to the Social Health Authority (SHA) funds and its operation outside the Consolidated Fund.

On the same breath, Senator Kavindu sought another Statement from the Standing Committee on Finance and Budget regarding the lack of prioritization and wastage of public resources in Machakos County.

The Machakos Legislator queried why Machakos County Government Officials used Kshs372.91 million in domestic and foreign travel as disclosed by the Controller of Budget Margaret Nyakangโ€™o.

She asked the Senator Ali Roba-led Committee to provide details on all domestic and foreign travels projected and undertaken by the Machakos County Government officials since 2022 and explain the criteria used in prioritizing the travels.

โ€œThe Finance Committee should find out whether there was transparency and accountability in the budgetary allocations and expenditures as per the principles of public finance management,โ€ Senator Kavindu said.

The Committee will subsequently explain the various strategies that the County Government of Machakos has put in place to enhance oversight mechanisms and strengthen institutional capacity to safeguard public funds.