Ruto’s Economic Advisor addresses government Ksh104 billion spending on SHA system amid ownership controversy
Ruto's Economic Advisor David Ndii dismisses reports that the government spent Ksh104 Billion on SHA system it doesn't own
Ruto’s Economic Advisor David Ndii dismisses reports that the government spent Ksh104 Billion on SHA system it doesn’t own.
The Chairperson of the Presidential Council for Economic Advisors, David Ndii, has dismissed allegations that the government spent Ksh104 billion to acquire the system that manages the Social Health Authority (SHA).
Taking to his X account, Ndii defended President William Ruto’s administration, stating that despite outsourcing the current health system, no money had been spent on it.
He maintained that the Ksh104 billion was user fees charged by the owners of the system and is payable over the next ten years, which is the contract period.
“The UHC digital platform is fully outsourced. The Government of Kenya has not spent one Ksh on it. Ksh104 billion is user fees payable over a 10-year contract period,” Ndii clarified.
According to Ndii, for instance, Kenyans channelled Ksh77 billion last year to pay user fees to one of the leading mobile service providers in the country.
He added that the new SHA system would provide similar capability but for Ksh10 billion per year, which is equivalent to Ksh50 per hospital visit per individual.
The government advisor was forced to clarify the matter after a section of Kenyans took to social media to express their disappointment over the government’s decision to pump billions into a new health system, which they claimed did not work.
JSC cancels 171 job vacancies in Judiciary
SHA system neither owned nor controlled by government; Auditor General damning revelations
EACC goes after former senior county officials who illegally hired 56 staff
Ruto has no legal authority to surrender KDF land Jesus Winner Ministry church; Former LSK boss
State goes after Mathe wa Ngara’s land, apartment and luxury cars
EACC exposes six counties over Ksh1 billion graft (LIST)
Ndii’s clarification also followed a report by Auditor General Nancy Gathungu who alleged that despite massive investment into the new health system that manages SHA, the government neither owned nor controlled the system.
In her report, Gathungu revealed that despite the multi-billion expenditure on the system, the government did not hold any intellectual property rights, thus limiting its authority over the system.
As per the report, the procurement of the system did not undergo a competitive bidding process as required by the constitution, with the Auditor General claiming that the contractor was sourced directly.
“This process was contrary to Article 227(1), which requires a fair, equitable, transparent, competitive, and cost-effective way of acquiring goods and services,” Gathungu stated.
Gathungu further alleged that disputes arising from the contract between the government and the system owners would be resolved by the London Court of International Arbitration rather than local courts.
Audit exposes widespread hiring irregularities in eight counties (LIST)
2 pupils among 3 killed in a suspected bandit attack
Government announces new SACCO rules after KUSCCO scandal
Five women die as gold mine shaft collapses in Siaya
Chebukati committed no sin, stop assassinating his name; Family tells Kenyans
Raila to chair ODM top organ meeting over Ruto deal
Former Governor Ferdinand Waititu denied bail pending appeal
Follow us
