State not paying Sh104bn for SHA system – Ruto

President William Ruto during the burial of late Malava MP, Malulu Injendi/SCREENGRAB

President William Ruto has denied reports that the government of Kenya spent a total of Sh104 billion to procure the Social Health Authority (SHA) system.

Speaking in Malava, Kakamega, during the burial late MP Malulu Injendi on Tuesday, Ruto said no funds from the government will be used to pay for it except for the fee for the service facility.

He explained that the system is run by a consortium of technology companies that will make sure there are no fraudulent claims, as was the case with NHIF.

The President said that with NHIF, almost 40 per cent of fund raised were lost to unscrupulous individuals who made false claims and were paid.

He insisted that this will not happen under his watch.

“Because we want to sort out the problem of fraud of the past. Money that was collected by NHIF was stolen by fraudsters through fraudulent claims which claimed almost 40% of the money that was being raised by NHIF. That will not happen as long as I'm president.

“That is why we said we are going to have a consortium of technology companies that is going to make sure there are no fraudulent claims in SHA, and they are going to make sure that system is not paid for by the government of Kenya. It will be a fee for service facility that will make sure we protect citizen’s contribution,” Ruto said.

He went on to say that those opposed to the system are brokers .

Ruto said they are the ones sponsoring stories on the SHA system not working.

He, however, insisted that there is no going back.

“Those complaining are people who have been stealing from us, they don’t want a system that works because they want to continue stealing from us.”

A report by Auditor General Nancy Gathungu said the Sh104 billion system that contains Kenyans’ health data is in the hands of private individuals.

The review established the escrow agent appointed by both parties is expected to collect Sh111 billion in 10 years.

According to the audit report, the consortium collects 2.5 per cent from every contribution by members, five per cent from claims by health facilities, and 1.5 per cent for track and trace solutions.

Further, the government is prohibited from developing another similar system similar to compete with the SHA system.