Kenya’s Public Investments Committee (PIC) has raised alarm over what it termed as “exorbitant” legal expenses incurred by the now-defunct National Hospital Insurance Fund (NHIF) during the 2020/2021 financial year, questioning how three law firms pocketed Ksh.77 million to recover a debt of just Ksh.13 million.
Appearing before the committee, Social Health Authority (SHA) Chief Executive Officer Dr. Mercy Mwangangi faced tough questioning over the payments, with MPs demanding accountability despite her insistence that the expenditure occurred before her tenure.
“We are not in that institution. We are looking at you,” PIC Vice Chair Caleb Amisi said. “Kenyans know you; they don’t know who left the institution.”
Committee chair Emmanuel Wangwe added that the NHIF failed to respond to audit queries from the Office of the Auditor-General, suggesting a possible cover-up.
In response, Dr. Mwangangi pledged to deliver a full report within three weeks and said the current SHA management was still tracing documentation from its predecessor.
The committee also flagged total legal fees amounting to Ksh.247 million during the same period, raising further doubts about NHIF’s procurement and oversight systems.
SHA Chief Financial Officer Robert Ingasira admitted that the Auditor-General had not been provided with complete information at the time but noted that the agency had since instituted reforms to enhance transparency.
Lawmakers further pressed Dr. Mwangangi to consider legislative amendments to the Social Health Insurance Act, citing public frustration over limitations such as the “one-off surgery” clause. She maintained that reforms were underway through the Health Benefits Advisory Panel, which is reviewing public feedback.
Dr. Mwangangi defended the new authority, arguing that the SHA’s structure is “far superior” to NHIF’s, with clearer benefit packages, stronger accountability, and legal tariffs published for public scrutiny. She urged MPs to help educate Kenyans on the new system and encourage enrolment.
