Social Health Authority (SHA) Chief Executive Officer Dr. Mercy Mwangangi found herself answering tough questions before the Public Investments Committee (PIC) over questionable legal expenditures that were inherited from the now-defunct National Hospital Insurance Fund (NHIF). The session, held on Wednesday, focused on how millions of shillings were spent in legal fees during the 2020/2021 financial year.
Members of Parliament, led by Committee Chairperson Emmanuel Wangwe, expressed concern that Ksh.77 million had been paid to three law firms to recover a debt of only Ksh.13 million. In total, the legal fees flagged for that period amounted to Ksh.247 million, raising questions about accountability and financial prudence in the management of public funds.
Appearing before the committee, Dr. Mwangangi promised to provide a detailed report within three weeks. However, MPs were not fully convinced by her explanation that the expenditures had been inherited from NHIF.
They reminded her that as the current head of SHA, she is accountable to the public for both past and present operations of the institution. PIC Vice Chair Caleb Amisi made it clear that Kenyans view her as responsible for the organization’s integrity, saying that the public does not distinguish between past and present leadership when it comes to accountability.
“We are not in that institution. We are looking at you. Kenyans know you; they don’t know who left the institution,” Amisi said, emphasizing that being new in office could not serve as an excuse.
The committee also raised concerns about whether SHA had responded to audit queries from the Auditor General. Wangwe questioned if the management had addressed issues raised in previous audit letters, suggesting that some of these queries might have gone unanswered.
SHA Chief Financial Officer Robert Ingasira admitted that many of the documents under review were carried over from NHIF and had not been submitted to the Auditor General during the transition period. He added that the authority was in the process of compiling all relevant files to ensure proper audit compliance.
Dr. Mwangangi assured the committee that significant reforms have already been implemented to improve accountability and service delivery within SHA. She explained that the authority now operates under a clearer framework, with benefit structures that are legally gazetted and accessible to the public.
According to her, this approach promotes transparency and ensures that Kenyans understand what they are entitled to under the new health coverage system.
Beyond the audit concerns, MPs also urged SHA to consider amending certain provisions of the Social Health Insurance Act to address issues affecting ordinary citizens.
One major concern was the restriction that prevents patients from undergoing more than one surgery within a short period, even when medically necessary. Wangwe noted that this limitation has caused hardship to many Kenyans who require multiple operations within a few months, saying such provisions should be reviewed to make the law more responsive to real-life health challenges.
In response, Dr. Mwangangi said that the Health Benefits Advisory Panel is currently reviewing public feedback and that future policy adjustments will take into account both the disease burden and available resources.
She emphasized that SHA’s goal is to ensure fairness and sustainability in health coverage while addressing the evolving needs of the population.
Despite the intense questioning, Dr. Mwangangi maintained that the Social Health Authority is a major improvement from the former NHIF. She highlighted the introduction of better governance structures, stricter accountability mechanisms, and more transparent benefit systems as key milestones in the transformation of Kenya’s health insurance sector.
Dr. Mwangangi further appealed to legislators to support public awareness campaigns aimed at encouraging more citizens to register with SHA, noting that broader participation would strengthen the system and help achieve universal health coverage for all Kenyans.
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