SHA Sh11.4b payouts spark fears of corruption in Kenya

The backstory. The Permanent Secretary for Medical Services told MPs that the ministry was forced to hire a high-profile legal team to launch a challenging legal battle. However, the government spent Shillings 104 billion to acquire the system. The details are coming to light after it was revealed that the multi-billion-shilling system for administering social health insurance is controlled by individuals, not the government. The government spent Shillings 142 million on lawyers. It had to pursue a legal challenge to the implementation of the Social Health Insurance Act 2023. The Social Health Authority, touted by the government as a groundbreaking innovation designed to streamline healthcare financing and ensure universal access to medical services, ended up in court following a petition by Aura Joseph Enock. Joseph Enock Aura is a Kenyan activist and petitioner known for challenging healthcare laws. In Aura v. Cabinet Secretary, Ministry of Health & 11 others (2024), he successfully argued that three health laws – the Social Health Insurance Act, the Primary Health Act, and the Digital Health Act – were unconstitutional due to procedural deficiencies. Aura, through his lawyer, argued that the Social Health Insurance Act 2023 was unconstitutional. Before the Health Select Committee, the Permanent Secretary for Medical Services told MPs that the ministry had been forced to hire a high-profile legal team to conduct a challenging legal battle. Legal fees of Sh142.2 million were incurred, which MPs are now expected to approve in the supplementary budget. The payment of Sh11.4 billion to hospitals by the Social Health Authority has sparked public outrage. An audit is underway, particularly for smaller private hospitals that have received disproportionate payments. Concerns have also been raised about some of the hospitals that provide inpatient services to the SHA. The uproar follows the SHA's decision to publish a list of all hospitals paid for their services on its website. This raises concerns about transparency and calls for closer scrutiny. Corruption everywhere! Corruption in Kenyan hospitals and the healthcare sector is a significant problem, highlighted in various reports and studies. According to the 2021 National Ethics and Corruption Survey, the healthcare sector is the second most corrupt in Kenya. This is particularly concerning as it affects the quality of healthcare provided to citizens. Furthermore, the Ethics and Anti-Corruption Commission (EACC) published a report in May 2023 on the state of corruption and unethical conduct in the healthcare sector. This report highlights the ongoing challenges and the need for reform. Corruption has led to excessive procurement costs and increased operating costs, ultimately affecting the availability and quality of medical services. This situation has been described as a major obstacle to the realization of the right to health for many Kenyans. Recently, the EACC called for the prosecution of individuals involved in a multi-million-pound scandal that resulted in significant losses to taxpayers. This underscores the urgent need for accountability. In the health sector, there are ongoing efforts to combat corruption and strengthen accountability mechanisms, as stakeholders recognize the detrimental effects of corruption on public health.

@The Standard @The Star