Questions have emerged after reports by Daily Nation newspaper that a firm linked to the Social Health Authority received payments amounting to Sh1.2 billion. The claims have attracted public attention, with many Kenyans calling for clear explanations on how the money was approved, the services provided and whether proper procurement procedures were followed.
A private technology company, Finsprint Limited, sits at the centre of a court case over deductions taken from payments that the Social Health Authority makes to hospitals. Petitioners, including Busia Senator Okiya Omtatah, say the firm has collected about Sh1.2 billion through a two per cent levy on SHA claims paid up to July 1.
The charge is applied through the Health Information Management System that hospitals use to submit claims, get approval and receive money for treating patients. The deduction is taken straight from the claim amount before hospitals are paid.
Court papers filed in Vihiga High Court state that the government introduced this fee without legal authority, without approval from Parliament and without public participation. The petitioners argue there is no law that allows the two per cent cut. They say the money is diverted from hospitals that treated patients and goes instead to a private company. They also raise concerns that patient data is being shared with a third party without proper safeguards.
Business records show Finsprint Limited was registered in July 2020 with a share capital of only Sh100,000. Its directors are Issa Sheikh Mohamed and Abdulhakim Ibrahim Sheikh. The majority shares are held by another company called Impactsoft Technologies Group Limited.
The petitioners want the court to stop the deductions until the case is fully heard. They also want any circulars or notices that allow the fee to be suspended.
One of the petitioners, Dr Benjamin Gikenyi Magare, said he first noticed the deduction while processing claims at a health facility. He wrote to SHA, the Digital Health Agency, the Health Ministry and the National Treasury seeking the legal basis for the charge. He received no reply.
The petitioners calculate that SHA has paid out about Sh60.7 billion in claims, which would produce the Sh1.2 billion figure through the two per cent levy. That figure remains an estimate put forward by the petitioners and has not been confirmed by the court.
Government officials have said the matter is being reviewed and that all payments made under SHA must meet legal and financial requirements. They have also promised to provide more information as investigations and audits continue. Lawmakers are expected to seek answers from the relevant agencies to ensure public funds are properly managed.
The respondents had not filed their replies at the time the case became public, and the court has not yet ruled on the allegations.
The dispute adds to wider questions about how the new health insurance system is being run and how public money is being handled.
