NAIROBI, Kenya — Members of Parliament have put the Social Health Authority (SHA) on the spot over questionable expenditures, including paying Sh77.6 million in legal fees to recover only Sh13.9 million, and a car park project whose cost ballooned from Sh909 million to Sh3.97 billion.
Appearing before the Public Investments Committee on Social Services, Administration and Agriculture (PIC-SSAA) on Tuesday, October 22, SHA Chief Executive Officer Dr. Mercy Mwangangi faced tough questions from lawmakers who accused the Authority of reckless and wasteful spending.
“Where is the value for money when you pay Sh77 million to collect Sh13 million?” asked Committee Chairperson Emmanuel Wangwe (Navakholo), noting that the payment contravened the Advocates’ Remuneration Order.
According to the Auditor-General’s report for the 2021/2022 to 2023/2024 financial years, SHA spent Sh247.8 million on legal services, with Sh91.6 million tied to cases worth only Sh13.9 million. Lawmakers said the figures reflected gross financial mismanagement and disregard for prudent use of public funds.
The committee also questioned Sh5.83 million in board sitting allowances allegedly paid without supporting attendance registers or signed minutes. “If you say that the board was paid five million, this means many deserving Kenyans were denied an opportunity to be treated,” said Martin Peters Owino (Ndhiwa).
Lawmakers revisited SHA’s controversial multi-storey car park project, whose cost escalation of 337p.c had previously been flagged for investigation by the Ethics and Anti-Corruption Commission (EACC).
“There were more than two payments on the car park which shot the budget by 37p.c. Make sure you tabulate all the transactions,” Wangwe said, lamenting that the Commission had yet to receive any updates on the EACC probe.
Nominated MP Bishop Kosgei faulted SHA’s finance department for allegedly failing to provide documents requested by auditors. “The Finance Director has let down the CEO and the institution by failing to cooperate with auditors and provide proper responses,” he said.
Committee Vice-Chairperson Caleb Amisi (Saboti) dismissed explanations that the irregularities stemmed from the COVID-19 era, calling it a “tired excuse.”
“We are talking about billions of shillings of taxpayers’ money. The COVID-19 pandemic line is a tired excuse by government institutions that have embezzled public funds,” Amisi said.
In her defence, Dr. Mwangangi said the Authority was still managing systemic challenges inherited from the defunct National Health Insurance Fund (NHIF) and had initiated reforms to strengthen accountability.
“We are committed to accountability and transparency, and we have made significant reforms to address past weaknesses,” she said.
The committee has now directed SHA to submit all missing financial records and provide evidence of cooperation with the EACC regarding the ongoing investigations into the inflated car park project.
Lawmakers are expected to reconvene in two weeks to review the documents before making recommendations on possible sanctions or recovery of misused funds.
