Members of Parliament have raised serious questions over how the defunct National Health Insurance Fund handled millions of shillings in questionable payments, putting the new State Health Agency under the spotlight.
During a session before the Public Accounts Committee, Dr. Mercy Mwangangi, the current CEO of the State Health Agency, faced tough questioning from lawmakers who wanted answers about a shocking payment made to a law firm that appeared to defy logic and accountability.
The committee revealed that NHIF had paid a law firm Ksh.77 million to recover a debt worth only Ksh.13 million.
This revelation left members of the committee in disbelief, describing the transaction as a clear case of misuse of public money.
According to the committee, such spending shows a deep problem within the health insurance system and raises concerns about how public funds were being managed under the former NHIF.
The lawmakers insisted that Kenyans deserved an explanation for how such a large overpayment was approved without proper checks.Committee chairperson Nicholas Gumbo said it was troubling that such financial irregularities had gone unnoticed for so long.
He pointed out that paying six times the value of a debt was not only unreasonable but possibly an indicator of corruption or serious incompetence within the institution. Gumbo stressed that Parliament would not tolerate such misuse of funds, especially in a sector meant to provide affordable health coverage to millions of Kenyans.
He reminded the SHA boss that the committee’s role was to ensure accountability in all state agencies, especially those handling public health resources.
In her defense, Dr. Mwangangi explained that the payment was made before her appointment and that she was working to clean up the system she inherited.
She assured the committee that an internal audit had already been launched to find out who approved the questionable payment and whether due process was followed.
She also said the agency would take firm action once the audit was complete, including recovering any lost funds.
Dr. Mwangangi emphasized that the new State Health Agency was committed to transparency, accountability, and the responsible use of public money.
The committee gave her three weeks to compile and present a detailed report with all the supporting documents regarding the payment.
Lawmakers also signaled that they might summon former NHIF officials to explain how the overpayment occurred and who benefited from it.
This incident has once again drawn attention to the challenges facing Kenya’s health insurance system.
