Busia Senator and human rights advocate Okiya Omtatah has called for the immediate suspension of the Social Health Authority (SHA), urging the Ministry of Health to take urgent action in light of the recent Auditor General’s report, which revealed shocking operational failures and rampant corruption within the medical scheme.
Taking to his official X account on Wednesday, March 5, 2025, Omtatah said that SHA operations should be suspended until a thorough investigation is conducted into the findings of the Auditor General’s report.
Omtatah further described the scandal exposed in the latest Audit report as an elaborate scheme that undermines Kenya’s push for Universal Health Coverage (UHC) and is instead enriching a few individuals at the expense of millions of Kenyans.
He added that the scandal highlights the growing dysfunction within the SHA, which was originally established to improve healthcare access for all Kenyans.
“The Ministry of Health must act urgently to immediately suspend the Social Health Authority (SHA) following its glaring operational failures and the damning revelations in the Auditor General’s recent report. Instead of advancing universal healthcare, SHA has become a dysfunctional system that exploits Kenyans while enabling large-scale corruption,” Omtatah said.
SHA scandal
Omtatah stated that the Auditor General’s report indicated how SHA has become a breeding ground for corruption, with Ksh104 billion in public funds being funnelled into private hands through non-competitive procurement processes.
“The Auditor General’s report exposes SHA as a Ksh104 billion corruption scandal; a scheme the government neither owns nor controls. Funds meant for healthcare are funnelled into private hands through non-competitive and unbudgeted procurement processes in blatant violation of the Public Procurement and Asset Disposal Act (2015),” Omtatah added.
“Shockingly, 2.5% of member contributions are siphoned into an escrow account with unknown signatories, beyond public scrutiny. Disputes are then outsourced to the London Court of International Arbitration, deliberately bypassing Kenya’s legal system. This is not reform; it is an elaborate fraud designed to enrich a few at the expense of millions.”
According to Omtatah, of the 18 million Kenyans registered with the SHA, only 4 million are actively contributing to the scheme, signalling a severe loss of trust in the system, adding that the report has exposed the financial instability plaguing SHA.
“SHA is not just riddled with corruption, it is operationally collapsing. Healthcare facilities are refusing service due to unpaid claims, patients are being forced to pay cash despite contributing, and out of 18 million registered Kenyans, only 4 million are actively contributing. This is a glaring sign of distrust and financial instability,” he added.
Furthermore, Omtatah insists that those responsible for the mismanagement and theft of public resources be held accountable, stressing that without accountability, this scandal will continue to harm Kenyans and erode public confidence in the country’s healthcare system.
“The people of Kenya deserve a healthcare system that is transparent, accountable, and functional. Instead, we have been betrayed by those entrusted with the responsibility to ensure our well-being, If we continue down this path, we risk irreparably damaging the future of Universal Health Coverage in Kenya,” he said.
