NAIROBI, Kenya — Health Cabinet Secretary Aden Duale has dismissed claims that public funds collected through Kenya’s national digital health system are being channelled to a private company, insisting that every shilling under the Taifa Care programme remains public money and is used solely for the benefit of Kenyan patients.
In a statement issued on Tuesday, Duale said reports suggesting that a private company was receiving public health funds had created a misleading impression about the service fee charged on claims processed through the national digital health system.
“My attention has been drawn to the report concerning the service fee levied on claims processed through the national digital health system. The report creates the impression that public money is being paid to a private company outside the law. That impression is wrong, and I reject it,” Duale said.
The Cabinet Secretary defended the digitisation of Kenya’s health financing system, describing it as a legal requirement under the Social Health Insurance Act, 2023, and a critical component of the government’s Universal Health Coverage agenda under the Taifa Care programme.
He explained that the law requires all key health insurance processes—including member identification, patient verification, pre-authorisation, claims management and settlement—to be conducted through a secure and interoperable national digital platform.
Duale clarified that the service fee associated with the digital platform is paid to the Digital Health Agency (DHA), a state corporation established under the Digital Health Act, 2023, and not to any private company.
He maintained that the Social Health Authority (SHA) remains the only institution legally mandated to receive, assess, process and settle claims submitted by contracted healthcare providers.
“The Social Health Authority is the only institution mandated by law to review, process and pay claims to contracted healthcare providers,” he said.
Responding to allegations that health funds are being handled through undisclosed accounts, the Health CS said all revenue received by the Digital Health Agency constitutes public funds that are subject to strict financial oversight and accountability.
“No private entity receives, holds, controls or disburses funds due to healthcare providers. Every shilling received by the Digital Health Agency is public money and is accounted for as public money. The agency’s accounts are audited under the Public Finance Management Act and the Public Audit Act before being tabled in the National Assembly,” Duale said.
He further stated that the national digital health platform is being implemented under a government contract awarded in accordance with the Public Procurement and Asset Disposal Act, dismissing suggestions that the involvement of subcontractors amounted to unlawful handling of public resources.
“The engagement of a sub-contractor by a contracted party is a lawful commercial arrangement. It does not make that sub-contractor a recipient of public funds outside the law, and it gives it no role whatsoever in paying hospitals,” he said.
Duale added that the regulations governing the digital health system underwent a Regulatory Impact Assessment, public participation and parliamentary approval before they were gazetted in April 2025.
The Cabinet Secretary also confirmed that the matter is currently before the High Court, where he has been named as a respondent, saying the government would address the issues through the judicial process rather than public debate.
“The Government will file its full response on the record, and I will abide by the determination of the court. I will not litigate this matter in the press,” he said.
At the same time, Duale sought to reassure healthcare providers that the government remains committed to resolving concerns surrounding claims processing under the Taifa Care programme.
He said he had directed both the Social Health Authority and the Digital Health Agency to continue engaging healthcare providers through established stakeholder forums and address outstanding claims issues promptly.
“To our healthcare providers: my door is not closed. I have directed the Social Health Authority and the Digital Health Agency to continue engaging you directly through the stakeholder mechanism, and to resolve claims complaints without delay. Where the system can be improved, we will improve it,” he said.
Reaffirming the government’s commitment to protecting public health funds, Duale insisted that the Taifa Care programme is designed to serve patients and strengthen Kenya’s universal health coverage agenda.
“Let me be clear. Every shilling under Taifa Care belongs to the Kenyan patient,” he said.
