National Treasury Cabinet Secretary John Mbadi appeared before the Senate on Wednesday, March 5, to address concerns regarding the funding and sustainability of the Social Health Authority (SHA). During the session, he faced tough questions from Kakamega Senator Boni Khalwale, who sought clarity on the government’s measures to ensure transparency and financial stability in the SHA initiative.
Mbadi acknowledged that the implementation of SHA since its rollout in October 2024 had been challenging, citing political hurdles as a common factor in similar health programs worldwide. He reaffirmed the government’s commitment to Universal Health Coverage (UHC), emphasizing the need for proper execution to achieve its intended goals.
To support SHA, Mbadi revealed that the Treasury had allocated Ksh6 billion in the current supplementary budget, with an additional Ksh3 billion designated for primary healthcare and another Ksh3 billion for critical healthcare services. He also dismissed claims that SHA was a form of taxation, clarifying that it functions as an insurance scheme separate from government expenditure.
However, the funding concerns come in the wake of a damning report by Auditor General Nancy Gathungu. The report exposed transparency issues, including the deduction of 2.5% of member contributions into an escrow account lacking proper oversight. The Auditor General also raised concerns about uncompetitive procurement processes, weak payment agreements, and unfavorable contract clauses within SHA operations.
As scrutiny over SHA’s financial management intensifies, Director General of Health Dr. Patrick Amoth highlighted that a significant challenge stemmed from low public participation. Despite 19.4 million Kenyans being registered under SHA, only 3.3 million were actively contributing to the scheme. This low compliance rate, he argued, was straining the system’s financial sustainability.
The ongoing funding debate has sparked calls from leaders and stakeholders for a thorough review of SHA’s governance framework. Some have even suggested suspending the initiative until accountability measures are strengthened to prevent potential mismanagement of funds.
With Treasury’s latest financial commitment, the government hopes to stabilize SHA and assure the public of its viability. However, the concerns raised by oversight bodies and the low contribution rate remain significant hurdles in achieving a robust and transparent healthcare financing system in Kenya.
By Kenyans