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President Ruto Dismisses Auditor General Claims of Sh104 Billion Spending on Social Health Authority (SHA) System

President William Ruto praised recent U.S. policy changes under Donald Trump’s administration, aligning them with Kenya's cultural and religious values.
President Ruto/IMAGE COURTESY.
  • President William Ruto denies reports that the government spent Sh104 billion on the Social Health Authority (SHA) system.
  • He states that the government will only pay for services rendered, not fund the system directly.
  • SHA is managed by private tech companies to prevent fraud that previously affected NHIF.
  • Ruto claims 40% of NHIF funds were lost through fraudulent claims, vowing to stop such losses.
  • He accuses critics of SHA of being brokers who benefited from NHIF fraud.
  • Auditor General Nancy Gathungu’s report revealed the system is controlled by private entities, earning various commissions from member contributions and claims.

President William Ruto has strongly dismissed claims that his administration spent Sh104 billion to procure the Social Health Authority (SHA) system. Speaking during the burial of Malava MP Malulu Injendi in Kakamega County on Tuesday, March 4, 2025, Ruto stated that the government will only engage SHA on a fee-for-service basis.

He explained that SHA is run by a consortium of private tech companies to curb fraudulent claims, a problem that severely affected the National Health Insurance Fund (NHIF).

Almost 40% of NHIF funds were lost through fraud. We want to eliminate that problem once and for all. As long as I’m president, no one will steal Kenyans’ money again,” Ruto said.

Accusations Against Critics

The Head of State further accused critics of SHA of being individuals who profited from NHIF corruption and are now resisting change.

“Those complaining are brokers who have been stealing from Kenyans. They don’t want a system that works because they want to continue benefiting from fraud,” he stated.

Auditor General’s Report Raises Questions

Despite Ruto’s defense, a report by Auditor General Nancy Gathungu found that the Sh104 billion SHA system is controlled by private entities. The escrow agent managing the funds is expected to collect Sh111 billion over ten years, earning:

  • 2.5% from each member’s contribution.
  • 5% from claims filed by hospitals.
  • 1.5% for track-and-trace services.

The report also raised concerns that the government is contractually restricted from developing a competing system.

A Heated Debate Ahead

Ruto’s remarks set the stage for further political and public debate on SHA’s transparency and financial structure, as concerns grow over private sector control of national health data.