Govt Now Threatens to Deregister Hospitals That Refuse to Treat SHA Beneficiaries

In Summary

• Members of Parliament have questioned the government's secrecy around the funding and execution of the Bomas of Kenya upgrade project.
• ARA seized Ksh1.547 billion in assets from fraud and corruption cases, the largest haul since 2021.
• A government report shows widespread delays in major projects, affecting service delivery nationwide.
• The government has warned private hospitals against denying SHA outpatient services, insisting all claims must be verified before payment.
• A new report shows that counties are prioritising recurrent expenses over development, raising concerns about service delivery.
• Schools have been ordered to release withheld certificates as the government disburses Ksh14 billion for school funding and resolves the TUK strike.

A new budget report reveals that most government projects have stalled, with completion rates ranging between one and 20 percent, despite significant funding. In a report by The People’s Daily, key affected projects include State House refurbishments, police headquarters construction, and transport projects such as railway developments and road access to SGR stations. The delays are linked to issues like lack of title deeds, funding misallocation, and implementation inefficiencies. The report urges urgent measures to fast-track stalled projects, including infrastructure, education, and wildlife conservation initiatives. 

MPs have raised concerns over the planned upgrade of Bomas of Kenya into a modern conference centre by a Turkish firm, citing a lack of transparency on project funding, timelines, and implementation details. The National Assembly’s Liaison Committee noted that the government has not provided clear information on the source of funds or budget allocation for the project, which is set to begin despite not being included in the latest budget documents. The upgrade has faced legal challenges, including the termination of the initial contract awarded to Summa Construction, which had proposed to finance 80 percent of the project through an international lender, as reported by The Business Daily. 

A new report by the Controller of Budget (COB) reveals that several counties, including Nairobi, Kilifi, Narok, and Lamu, have spent billions on non-essential items such as legal fees, garbage collection, catering, and office supplies while allocating minimal funds to development projects. According to The Eastleigh Voice, Nairobi County led in spending on legal fees (Ksh719.2 million) and garbage collection (Ksh897.82 million), while Narok County spent Ksh1.5 billion on specialised materials and services. Other counties, including Machakos and Homa Bay, made notable allocations to sports, hospitality, and routine maintenance. The report raises concerns over the counties’ priorities, with critics arguing that crucial sectors like healthcare, infrastructure, and education continue to suffer due to low development expenditure.

The Assets Recovery Agency (ARA) confiscated cash and assets worth Ksh1.547 billion in 2023, marking the highest seizure since 2021, with Ksh865 million in liquid assets and Ksh682 million in properties, as reported by The Business Daily. The agency filed 29 forfeiture cases targeting assets valued at Ksh530 million, including vehicles, apartments, land, and commercial buildings. Among those who lost assets to the State are businessman Anthony Kepha Odiero, a former payroll manager in Elgeyo Marakwet, and a convicted drug trafficker. Kenya remains under global scrutiny for money laundering, with ARA enhancing efforts to recover and repatriate illicit funds.

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Private healthcare providers refusing to offer outpatient services under the Social Health Authority (SHA) risk deregistration, with Health PS Harry Kimtai warning that the government will not bow to pressure over unpaid medical claims. Private hospitals are demanding Ksh30 billion owed by the defunct NHIF, with some suspending SHA services in protest. The Standard reports that Kimtai insisted that claims above Ksh10 million must be verified and questioned why some date back to 2016. The government has disbursed Ksh32 million in Embu County under SHA, with Ksh24 million going to public hospitals and Ksh8 million to private facilities.

Education CS Julius Migos has directed all schools to release KCSE and KCPE certificates withheld due to unpaid fees, stating that it is illegal to deny students their documents for any reason. He also announced the government’s disbursement of Ksh14 billion to secondary schools for first-term capitation. Additionally, the CS signed an agreement with university staff unions to end the month-long strike at the Technical University of Kenya (TUK), allowing learning to resume, as reported by KBC.