The Auditor General has on Monday dropped a bombshell revealing that the government neither own or controls the Social Health Authority (SHA) systems.
The revelations raises eyebrows as to why the government pumped in Ksh 104.4 billion to the system from the beginning when they neither owned the systems infrastructure and intellectual property.
“The ownership of the system, system components, and all intellectual property rights shall remain in the ownership of the consortium,” said Auditor General Nancy Gathingu
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Nancy expressed concern as to why Kenya’s contribution towards the SHA system is being accepted when the government neither owns it posing a risk to public funds and delivery of healthcare in the country.
It has also been revealed that the procurement procedure did not undergo a competitive bidding process as stipulated in Article 227(1) of the Kenya Constitution 2010.
“This process was contrary to Article 227(1) of the Constitution, which requires a fair, equitable, transparent, competitive and cost-effective way of acquiring goods and services,” she said
As things stand, the system anticipates to collect Ksh 111 billion in revenue over the next ten years a major part of it coming from SHA contributions.
“The projected revenues include 5% to be deducted from claims made by health facilities, which has the effect of increasing healthcare costs indicative of a service charge of 5% to citizens every time they access healthcare services.
The procuring entity shall ensure neither the procuring entity nor the Government health agencies shall access any part of the system to build a competing product or service,” she said
