President William Ruto on Tuesday, March 4, 2025, dismissed reports that his Kenya Kwanza administration breached the law in procuring a healthcare information technology digitization system worth Ksh104 billion.
Speaking at the late Malava MP Malulu Injendi burial ceremony, Ruto explained that his administration formed a consortium with several companies to help protect the Social Health Authority (SHA) from fraud.
He further explained the government would not pay for the service but maintained it was obtained on a key for service facility arrangements.
“Ndio sababu nimefanya consortium kubwa.. tukasema we are going to have a consortium of technology companies that is going to make sure that there are no fraudulent claims in SHA and they are going to make sure that system will not be paid for by the government of Kenya; it will be a key for service facility that will make sure we protect citizens contribution (That is why we have formed a big consortium. We said we are going to have a big consortium of technology companies that is going to make sure that there are no fraudulent claims in SHA, and they are going to make sure that system will not be paid for by the government of Kenya; it will be a key for service facility that will make sure we protect citizens contributions),” Ruto explained.
Gathungu’s findings
The Auditor General’s report on state organs for the year 2023-2024, listed unbudgeted and non-competitive procurement, undefined scope of works, lack of agreements on payments, and unfavorable contract clauses as some of the shortcomings of SHA.
It also added that the government paid Ksh104 billion for the technology.
“The State Department procured the Healthcare Information Technology Digitization System of Ksh104 billion.”
“However, a review of tender documents, contract agreement, and financial proposal indicated the following unsatisfactory matters,” Nancy Gathungu’s report read in part.
The damning revelation triggered a series of reactions online, with various people calling for proper accountability on the matter.
We are not madmen
While clarifying the matter, Ruto slammed critics, maintaining that he was not a madman. While underscoring the need to protect people’s contribution, Ruto claimed that those opposed to SHA were the biggest beneficiaries of the now defunct National Hospital Insurance Fund (NHIF).
He described SHA opponents as brokers who mainly owned hospitals that received millions of NHIF contributions, forcing the government to launch a new health system.
“Niliona juzi wanasema eti serikali itatumia billion mia moja kwa system, kwani wanaona sisi ni watu wazimu? Hakuna senti ya serikali itatumiwa kulipa system yeyote ( The other day, I saw some people saying that the government will use Ksh100 billion for the system. Do they think we are madmen? The government will not use even a cent to pay for the system),” Ruto stated.
“Fake claims, fraudulent claims consumed almost 40 per cent of the money that was being raised by NHIF,” Ruto added.
