The Chairperson of the Presidential Council for Economic Advisors, David Ndii, has refuted claims that the government spent Ksh104 billion to procure the system managing the Social Health Authority (SHA).
Responding through his X account, Ndii clarified that the system is fully outsourced and that the government has not paid a single cent for its acquisition. Instead, he explained that the Ksh104 billion represents user fees to be paid over a 10-year contract period.
“The UHC digital platform is fully outsourced. The Government of Kenya has not spent one Ksh on it. Ksh104 billion is user fees payable over a 10-year contract period,” he stated.
Ndii compared the cost of the SHA system to user fees paid by Kenyans to leading mobile service providers, which he noted amounted to Ksh77 billion last year alone. He further defended the SHA platform, arguing that at Ksh10 billion per year, it translates to an average of Ksh50 per hospital visit per person.
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His remarks came in response to public criticism, with many Kenyans on social media questioning the government’s decision to commit billions of shillings to a new health system that some claimed was ineffective.
Ndii’s response also followed concerns raised by Auditor General Nancy Gathungu, who revealed that despite substantial investment in the system, the government neither owns nor controls it.
According to Gathungu’s report, the system was procured without a competitive bidding process, contrary to constitutional requirements. She argued that direct sourcing of the contractor violated Article 227(1), which mandates fairness, transparency, and cost-effectiveness in public procurement.
Additionally, Gathungu pointed out that any disputes arising from the contract would be resolved by the London Court of International Arbitration rather than Kenyan courts, raising further concerns over the government’s control of the system.
As the debate continues, Ndii has maintained that the SHA system is a cost-effective solution aimed at improving healthcare services, while critics continue to question the procurement process and lack of government ownership.
