Auditor General Nancy Gathungu has revealed that the government has no control over the Social Health Authority (SHA) system, a multibillion-shilling platform designed to manage social health insurance.
According to her report, the Sh104 billion system, which holds critical health data of Kenyans, is under the control of private individuals rather than the state.
The SHA system was introduced to replace the National Health Insurance Fund (NHIF), aiming to streamline health insurance processes.
Auditor General Nancy Gathungu during a past media presser. Photo: Citizen Digital Source: Facebook
However, Gathungu’s report indicates that the consortium awarded the contract to run the system retains full ownership of its components and intellectual property rights.
The government will only receive ownership of the physical infrastructure, leaving the system’s core functions in private hands.
“Ownership of the system, system components, and all intellectual property rights shall remain in the ownership of the consortium except for the infrastructure which is to be transferred to the procuring entity,” Gathungu stated.
This revelation raises concerns over the security and management of sensitive health data. The auditor general warned that the consortium is set to earn billions of shillings from the system, with the contract stipulating that five percent of every contribution made by members will go directly to the private owners.
Auditor General Nancy Gathungu during a past parliamentary committee event
The contract, which is set to run until June 30, 2024, guarantees the consortium an estimated Sh11 billion in profits over the next decade.
Gathungu highlighted a controversial clause in the contract that prohibits the government from developing a similar system.
If any attempt is made to create an alternative system, the state would be required to compensate the consortium.
The report also pointed out that the SHA system has been marred by inefficiencies, with some patients being turned away from health facilities or asked to pay cash due to system failures. This has sparked widespread criticism from religious leaders and human rights advocates.
Auditor General Nancy Gathungu speaks during a past media presser. Photo: Nation Source: Facebook
Catholic Bishop Antony Muheria called on the government to intervene, saying, “The Ministry of Health must wake up and stop the suffering of Kenyans.”
Legal experts have also questioned the lack of public participation and transparency in the procurement process.
The revelations have added pressure on the government to review the contract and ensure that public health services are not compromised.
With billions of shillings at stake and the health of Kenyans hanging in the balance, the controversy surrounding the SHA system is likely to intensify in the coming months.
