President William Ruto has dismissed reports that his government spent KSh 104 billion on the Social Health Authority (SHA) system.
Speaking in Kakamega County on Tuesday, March 4, during the burial of Malava MP Malulu Injendi, he described the claims as propaganda spread by individuals who used to benefit from corruption in the health sector.
The president was responding to a report by Auditor General Nancy Gathungu, which suggested that the SHA system had cost the government KSh 104 billion despite not being fully controlled by the state.
The report also raised concerns about how the system was acquired, saying the process did not follow proper procedures.
However, Ruto firmly denied these claims. "Let me make it clear: the government has not paid a single cent for this system, and no taxpayer money will be used to pay for it," he said.
He explained that the SHA system operates on a “fee-for-service” basis, meaning that payments are made based on the services provided, not as a lump sum investment.
The president accused some people of spreading false information because they were unhappy with the changes in the health sector. "We know who is making noise.
These are brokers who used to steal from NHIF through fake claims," Ruto said. "In the past, they took nearly 40% of public health funds, but that is over now."
He assured Kenyans that the SHA system was designed to eliminate fraud and protect public money.
"This system is here to ensure that every Kenyan gets the healthcare they deserve without corruption eating away their contributions," he added.
The SHA system, which started in October 2024, is managed by a group of technology companies, including Safaricom Limited, Apeiro Limited, and Konvergenz Network Solutions. It combines three key health funds:
1. Social Health Insurance Fund (SHIF)
2. Primary Healthcare Fund
3. Emergency, Chronic, and Critical Illnesses Fund
Despite the president’s assurance, some leaders and organizations have raised concerns about the transparency of SHA.
The Kenya Medical Practitioners, Pharmacists, and Dentists Union (KMPDU) has already demanded reforms and threatened a nationwide strike.
Ruto, however, remained firm. "No matter how much noise they make, we will not go back to the days of NHIF fraud.
This new system will work, and it will serve the people of Kenya," he said.
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