Members of Parliament have once again raised alarm over questionable financial practices linked to the now-defunct National Health Insurance Fund (NHIF).
During a sitting of the Public Investments Committee, chaired by Emmanuel Wangwe, lawmakers questioned how three law firms ended up being paid a staggering Ksh.77 million to recover a mere Ksh.13 million debt.
The revelation has sparked outrage, with MPs describing the expenditure as both irrational and exploitative of taxpayers.
Appearing before the committee, Social Health Authority (SHA) Chief Executive Officer Dr. Mercy Mwangangi faced intense scrutiny as legislators demanded accountability for the questionable spending. Although she attempted to distance herself from the transactions, explaining that they were conducted before SHA took over from NHIF, MPs insisted that as the current accounting officer, she must provide answers.
PIC Vice Chair Caleb Amisi firmly reminded her that the public looks to her office for explanations, saying that she cannot hide behind the excuse of being new in office.
His remarks highlighted a growing frustration among lawmakers about the persistent misuse of public funds within health institutions.
Chairperson Emmanuel Wangwe also pressed Dr. Mwangangi to clarify whether her team had responded to audit processes, expressing concern that some audit letters from the Auditor General were ignored.
This lack of cooperation with audit institutions, he said, demonstrated a worrying pattern of negligence and impunity among public officers. In response, Dr. Mwangangi assured the committee that her team is compiling comprehensive responses and promised to provide a detailed report within three weeks.
The committee’s probe also revealed that a total of Ksh.247 million was spent on legal fees in the 2020/2021 financial year alone, raising eyebrows about how legal costs could spiral to such extremes.
SHA Chief Finance Officer Robert Ingasira explained that the documents they presented to the committee were compiled from both NHIF and SHA records. He added that reforms have since been implemented under the new SHA structure to ensure that benefit packages are now transparent, itemized, and gazetted for public access.
Dr. Mwangangi went further to defend the reforms introduced under SHA, arguing that the new system is a major improvement over NHIF. She stated that SHA now operates under a clear legal framework and aims to provide equitable access to health services.
However, MPs pushed her to consider further amendments to the Social Health Insurance Act to address public concerns, particularly those related to the “one-off surgery” clause that restricts patients from accessing repeat operations within a certain timeframe.
Wangwe emphasized that Parliament has the authority to amend the law to reflect the realities and needs of Kenyans who rely on the public health insurance scheme.
In her closing remarks, Dr. Mwangangi maintained that SHA represents a new era of transparency and accountability in health financing. She urged legislators to help in educating Kenyans about the new system and encouraging enrollment.
While her reassurances sounded promising, the committee made it clear that they expect a full report and tangible action within the promised period. For many Kenyans, this case stands as yet another reminder of how public institutions have, for years, squandered taxpayers’ money through inflated contracts and unchecked corruption.
The hope now is that the new Social Health Authority will truly break from NHIF’s tainted legacy and deliver value for every shilling contributed by the public.
