Govt Pushes Back on Daily Nation Story Claiming Ksh50 Billion SHA Loss

The Ministry of Health has formally written to the editorial board of Nation Media Group, demanding clarification over a front-page story published in the Daily Nation that alleged a Ksh 50 billion rip-off at the Social Health Authority (SHA).

In the letter from the Office of the Cabinet Secretary, the ministry described the report as a serious misrepresentation of facts, stressing that the figures cited in the newspaper do not indicate lost or stolen public funds.

“We are writing to express our profound concern regarding your recent reporting, which incorrectly asserts that Ksh 50 billion has been ‘lost’ under the Social Health Authority (SHA). This narrative is a serious misrepresentation of facts to the Kenyan public and demonstrates a fundamental misunderstanding of statutory accounting estimates and transitional alignment processes,” the ministry stated.

The ministry clarified that no billions have been lost or misappropriated and that the figures highlighted in the report reflect normal accounting provisions and legally approved payments within the health insurance system.

Transfers Are Part of Legal Transition

Also Read: “People Are Mad”: Ruto Responds to Claims of Ksh 50 Billion Loss at SHA

“To categorically set the record straight: no billions have been lost or misappropriated. The figures you are summing up represent standard accounting provisions and legally sound payments, not missing cash,” the letter emphasized.

Officials also addressed claims that money had been irregularly transferred from the Social Health Insurance Fund to SHA. They explained that SHA is the statutory authority responsible for managing three funds: the Primary Healthcare Fund, the Emergency, Chronic and Critical Illness Fund and the Social Health Insurance Fund.

The ministry noted that the transfers referenced were part of the legally required transition of assets and accounts from the now-defunct National Health Insurance Fund to the new system established under the Social Health Insurance Act, 2023.

Outstanding Claims Are Properly Reserved

The ministry further disputed reports that Sh26.8 billion had been paid out without proof, explaining that the sum represents outstanding claims reserved for hospitals whose paperwork had not yet been fully submitted during the audit period.

Also Read: Kenyans React After Health PS Mary Muthoni Shares Video of Herself Crying Online

Officials said such provisions are standard in insurance accounting and are known as Outstanding Claims Reserve, ensuring funds are available once hospitals complete their documentation.

“These funds have not been paid out and are not missing. They are simply set aside to settle verified medical claims once hospitals submit the required records,” the ministry added.

The Ministry of Health has now requested Nation Media Group to clarify why the figures were reported as losses and urged the media house to correct what it termed misreporting that could mislead the public about the country’s new health insurance system.

Follow our WhatsApp channel for instant news updates