Parliament to Probe SHA’s Ksh6.3 Billion Tender to Private Firms 

‍Friday, 𝐍𝐨𝐯𝐞𝐦𝐛𝐞𝐫 15, 𝟐𝟎𝟐𝟒

In today’s news, the Business Daily reports that an IMF report found that 97% of government institutions in Kenya have not disclosed the beneficiaries behind their awarded tenders. Out of over 33,000 state entities expected to reveal ownership details of tender-awarded firms, only 926 had complied. The report highlights the slow progress toward transparency in public procurement, with authorities now planning reforms to enforce beneficial ownership disclosure through stricter procurement laws.

The Senate has launched an investigation into allegations of collusion between the Social Health Authority (SHA) and private insurers over a Ksh6.3 billion medical contract with the National Police Service (NPS) according to Citizen Digital. The probe follows claims of delayed or denied compensation for injured officers, with only 937 out of 1,966 claims settled so far, amounting to Ksh709 million. NPSC Chairperson Eliud Kinuthia criticised SHA and insurers for creating hurdles, citing rejected claims worth Ksh240 million and 161 pending claims worth Ksh108 million. Senators vowed to hold SHA accountable and address the contractual confusion impacting vulnerable police officers.

Read Also: Debt Defaults Hits Government Agencies as KRA Goes After Chinese Firm

Petrol consumption in Kenya fell by 2.1% in FY 2023/24, declining to 5,460 million litres from 5,577 million litres the previous year as per Business Daily.. This dip led to a Ksh5.7 billion drop in government revenue from key fuel levies. Income from the Road Maintenance Levy Fund (RMLF) decreased by Ksh4.1 billion to Ksh66 billion, while revenue from the Petroleum Development Levy (PDL) fell by Ksh1.6 billion to Sh24 billion. The decline is attributed to reduced fuel usage and lower money circulation.

Kenya’s drought crisis is worsening, with Garissa, Kilifi, Kwale, and Tana River counties now in the "alert" phase, leaving about one million people at risk of starvation, according to the NDMA. Acute malnutrition affects nearly 480,000 children under five and 110,000 pregnant and breastfeeding mothers across several counties, including Turkana, Kitui, and West Pokot. The delayed October–December rains have exacerbated the situation in Kenya’s arid and semi-arid regions, mirroring a broader Horn of Africa food insecurity crisis impacting 67 million people as reported by Capital Business.

Read Also: Top Money Market Funds in Kenya, Based on October 2024 Returns

Finally, Kenya’s collective investment schemes (CISs) saw a record-breaking rise in assets under management (AUM), climbing by Ksh62.3 billion in just three months to reach Ksh316.4 billion by the end of September. This surge is attributed to the entry of new fund managers and growing investor confidence in unit trusts as a safe and profitable avenue for wealth growth. The rapid growth underscores the expanding role of CISs in Kenya's investment landscape, providing individuals and institutions with accessible and regulated investment options.

Read Also: How to Import a Phone or Laptop Directly from the US to Kenya‍