Auditor General Responds To Gov’t Over SHA Procurement Report
Auditor General Nancy Gathungu has defended her report, which exposed procurement violations in the Social Health Authority’s (SHA) healthcare information technology system worth Ksh.104 billion, claiming it was factual and ethical.
Gathungu, who spoke before the Senate County Public Accounts Committee (CPAC) on Tuesday, shed light on some audit concerns, stating that the system was riddled with major errors and illegalities.
Despite criticism from those in government about the accuracy of her report, the Auditor General stood firm.
“The issues that have been raised are my audit findings… already I have concluded that there was no effectiveness or lawfulness in that matter,” she said.
Universal Health Coverage At Crossroads:
— NTV Kenya (@ntvkenya) March 4, 2025
Auditor General Nancy Gathungu says the State neither owns nor controls the Social Health Authority system.
This is despite investing Sh104 billion of public funds into the digital system.#NTVTonight @zeynabIsmail @hellenaura1 pic.twitter.com/7D2CqrrqCs
Furthermore, Gathungu expressed concerns about the system’s confusing flaws, such as the payback mechanism used, which permits service providers to withhold 2.5% of member contributions, or Ksh.10 billion per month.
“Internal controls have not been followed, the governance structure has problems, there is no risk management, and thus we have these issues,” she said.
“Kenyans are finally happy that someone has uncovered these special purpose vehicles which are special looting vehicles put together to get direct procurements,” CPAC Chair and Homa Bay Senator Moses Kajwang’ said in response.
“They take 2.5% from contributions and claims and something they call trace and track that they are also taking another 1.5% on track and trace,” Nairobi Senator Edwin Sifuna added.
Gathungu left it up to Parliament to decide what to do next, despite MPs calling for the SHA contract to be cancelled.
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“Why does your report fall shy of giving those strong recommendations that the law permits you to make… we can’t continue to let people enjoy the proceeds of crime. Let us just declare this SHA a criminal enterprise,” said Sifuna.
SHA: The Auditor General's Report
— Citizen TV Kenya (@citizentvkenya) March 3, 2025
Auditor General: SHA technology not owned or controlled by govt
Auditor questions procurement process, citing lack of transparency
Gathungu flags use of 2.5% member contributions to fund system
It is unclear why the system costs over Ksh 104… pic.twitter.com/N5tsbiTu3W
“The ultimate role and responsibility for action on OAG report is Parliament, so when you speak on the issues from the public, just look at that chain of accountability system,” Gathungu responded.
The Auditor General’s study identified various flaws in the acquisition of the system, which is not owned by the government.
These include uncompetitive procurement, a lack of a payment arrangement agreement, unfavourable contract conditions, and a lack of risk assessment, among others.
Auditor General Responds To Gov’t Over SHA Procurement Report
