By TWV Reporter
The National Assembly Public Investments Committee on Social Services, Administration, and Agriculture has scrutinised the Social Health Authority (SHA) over questionable expenditures. During a session on 22 October with SHA officials, led by CEO Dr. Mercy Mwangangi, the committee revisited the multi-storey car park project, whose cost escalated from Ksh 909 million to Ksh 3.97 billion, a 337 per cent increase from the original contract.
Although the committee previously recommended that the Ethics and Anti-Corruption Commission (EACC) investigate the project, no progress report has been submitted. Committee chairman Emmanuel Wangwe (Navakholo) pressed for accountability, stating,
“There were multiple payments on the car park that increased the budget by 337 per cent. Ensure all transactions are tabulated as documented in the books of account.”Other irregularities include unsupported board payments and excessive legal fees. According to Auditor-General Nancy Gathungu’s report for the financial years 2021/2022 to 2023/2024, the SHA Board incurred Ksh 5.83 million on meetings without signed attendance registers or board minutes.
Additionally, legal expenses of Ksh 247.8 million were recorded, including Ksh 91.6 million paid for cases valued at only Ksh 13.9 million, an overpayment of Ksh 77.6 million, contravening Schedule 6(1)(b) of the Advocates’ Remuneration Order. Wangwe questioned, “Where is the value for money when you pay Ksh 77 million to collect Ksh 13 million?”
Ndhiwa MP Martin Peters Owino added, “Paying the Board Ksh 5 million means many deserving Kenyans were denied treatment opportunities.” Nominated MP Bishop Jackson Kosgei criticised the SHA’s Finance Department, stating, “The Finance Director has let down the CEO and the institution by failing to cooperate with auditors and provide proper responses.” Vice-Chairperson Caleb Amisi (Saboti) expressed frustration, saying, “We are talking about billions of shillings of taxpayers’ money. The COVID-19 excuse is worn out by institutions that have misappropriated funds.
”Dr. Mwangangi assured the committee that SHA is undergoing reforms and working with documents inherited from the defunct National Hospital Insurance Fund (NHIF). “We are committed to accountability and transparency and have made significant reforms to address past weaknesses,” she said. The committee directed SHA to provide missing documentation and evidence of cooperation with the EACC regarding the car park investigation.
