Recent findings from the Auditor General’s Report on National Government Ministries, Departments, and Agencies for 2023/24 have raised serious concerns about corruption in Kenya’s health sector, particularly regarding the procurement of a healthcare information technology digitization system used by the Social Health Authority (SHA).
Corruption and Lack of Transparency
The report reveals that despite a massive investment of Ksh.104.8 billion, the state neither owns nor controls the SHA system. All system components and intellectual property rights remain with the private consortium, leaving the government without proper oversight. Government advisors have even suggested that “GoK has not spent one Ksh on it,” a claim that many argue ignores the financial strain on hardworking taxpayers.
The unbudgeted procurement process, which relied on single sourcing rather than a competitive bidding procedure, breached Article 227 of the Constitution. This article mandates fairness, transparency, and cost-effectiveness in the acquisition of goods and services. Additionally, the procurement contracts failed to clearly define the scope of work or specify the number of healthcare facilities to be covered, raising further accountability issues.
Impact on the Health Sector
Corruption in the health sector is not new. Past scandals—from the alleged mismanagement during the #Covid19millionaires era to controversies like the #afyaHouse and #MES scandals, as well as the loss of donor funds—have already strained resources meant for critical health services. The current findings add fuel to the fire, especially as the recent withdrawal of funding by the US government signals growing international concern over misappropriated resources.
Furthermore, the report highlights uncertainty surrounding the Ksh.7 billion allocated for training healthcare workers. It remains unclear how much of this fund was utilized, how many workers were trained, the methods employed, and the specific regions that benefited. Such gaps in transparency compromise efforts to improve the overall quality of healthcare.
Broader Implications for SHA, SHIF, and NHIF
While the report primarily focuses on the SHA system, concerns over corruption and mismanagement resonate across the health sector. Institutions like the Social Health Insurance Fund (SHIF) and the National Hospital Insurance Fund (NHIF) have also faced scrutiny in recent years. These agencies play crucial roles in providing and financing health services, and any erosion of public trust in their operations could severely impact the realization of the right to health for millions of Kenyans.
Calls for Action
Critics argue that without decisive action from investigation agencies, those responsible for stealing, mismanaging, and misappropriating funds will continue to erode the health sector. There are growing calls for robust legal and regulatory reforms to safeguard public resources and ensure that corruption does not further undermine the delivery of essential health services.
As Kenya grapples with these challenges, the Auditor General’s report serves as a stark reminder of the urgent need for accountability and transparency in public procurement. The hope is that corrective measures will restore faith in the institutions meant to serve the public and protect the rights of all Kenyans to quality healthcare.
