The CEO’s actions reportedly became even more contentious after he authorized payments totalling Ksh 1.3 billion to service providers unaffiliated with hospitals that were withholding services over unpaid reimbursements. These funds were part of a Ksh 3 billion allocation meant to address outstanding payments, which was announced during the recent Mashujaa Day celebrations as part of the government’s support for healthcare providers during SHA’s transition
Reports suggest the SHA board was instructed to take disciplinary action against their former CEO Wachira following his refusal to prioritize settling hospital bills and instead paying out funds to two insurance firms, contrary to the agency’s board directives. Allegedly, State House became involved after concerns arose about the delayed hospital payments, especially since funds were reportedly available.
Sources claim that when Wachira was questioned on his decision not to disburse Ksh 1.5 billion to hospitals as the board had advised, he cited awaiting authorization from the Ministry of Health. However, upon inquiry, the Health Cabinet Secretary reportedly confirmed that such authorization had been issued weeks prior. It then emerged that Wachira had used these funds to pay the two insurance companies instead, which led to further scrutiny.
According to insiders, these revelations prompted State House to urge the board to suspend Wachira and initiate a probe into his actions. Although Wachira is said to have sought a refund from the insurance firms to reverse the transaction, his efforts were reportedly unsuccessful. Sources close to SHA say this incident is just the latest in a series of actions perceived as undermining the SHA’s recently implemented health scheme. Wachira had previously faced internal concerns regarding his commitment to SHA’s mission, with some viewing him as resistant to the transition from the National Health Insurance Fund (NHIF) to SHA, given his prior ties to NHIF.
The CEO’s actions reportedly became even more contentious after he authorized payments totalling Ksh 1.3 billion to service providers unaffiliated with hospitals that were withholding services over unpaid reimbursements. These funds were part of a Ksh 3 billion allocation meant to address outstanding payments, which was announced during the recent Mashujaa Day celebrations as part of the government’s support for healthcare providers during SHA’s transition. Insiders indicate that Wachira did not inform the board or its chairman before making these payments, which provided grounds for his detractors to question his conduct.
Following this, the SHA board released a statement indicating that Wachira was placed on a 90-day leave to allow for an investigation into his professional conduct. The board also highlighted ongoing challenges with unpaid hospital bills, which have caused hospitals to demand cash payments from patients, a direct contradiction to SHA’s commitment to improving healthcare access. Wachira reportedly presented documentation defending his payments, but the board maintained that he breached protocol by acting unilaterally on transactions exceeding Ksh 50 million without board or chairman consent.
As the investigation proceeds, the SHA leadership is expected to examine further whether Wachira was involved in any efforts to disrupt SHA’s operations, including allegations of discouraging former NHIF employees from transitioning to SHA.
