Faith Nyasuguta
Kenya’s former Deputy President Rigathi Gachagua has accused the government of massive financial mismanagement in the rollout of the country’s new healthcare system, alleging that up to Sh103 billion ($792 million) may have been lost.
The controversy centers on the Social Health Authority (SHA), a newly established state agency designed to replace the National Hospital Insurance Fund (NHIF) and expand access to universal healthcare. SHA is intended to streamline contributions, improve service delivery, and widen coverage for millions of Kenyans.
Speaking at a public event in eastern Kenya, Gachagua claimed he had obtained documents pointing to what he described as a “carefully orchestrated scheme” to siphon public funds during the transition. He also accused Health Cabinet Secretary Aden Duale of having links to companies involved in implementing the programme.
“He has demanded evidence, but expects documents that would never directly mention him,” Gachagua said. “We believe he is central to the problems affecting healthcare delivery.”
Gachagua further argued that the shift from NHIF to SHA created a window for inflated spending and possible abuse of funds. According to him, initial reform plans under NHIF were budgeted at around Sh800 million ($6.1 million), but costs surged significantly following the introduction of SHA.
“Only about Sh1 billion ($7.7 million) went into setting up the system,” he claimed. “The remaining Sh103 billion ($792 million) was lost through irregular dealings.”
The allegations have been firmly rejected by Health Cabinet Secretary Aden Duale, who dismissed them as unsubstantiated and politically motivated. In an official response, Duale challenged Gachagua to provide verifiable documentation linking him to any of the companies mentioned.
“I have repeatedly asked him to present a CR12 document from the Business Registration Service,” Duale said. “That document would clearly show the ownership of the company he alleges I have shares in. His failure to provide it speaks volumes.”
Duale also criticised attempts to associate him with certain firms without evidence, warning that such claims risk damaging legitimate businesses and reputations.
“There are legitimate Kenyan entrepreneurs involved,” he stated. “To suggest otherwise without evidence is both misleading and harmful.”
The dispute has added to growing political tensions around Kenya’s healthcare reforms, which remain a key pillar of the government’s domestic agenda.
Deputy President Kithure Kindiki has defended the SHA rollout, arguing that it has already expanded healthcare access significantly.
“In 2022, only about seven million Kenyans were covered,” Kindiki said. “Today, that number has grown to over 30 million. That is real progress.”
He dismissed the accusations as politically driven, accusing former leaders of criticising reforms they were unable to implement while in office.
As the debate intensifies, the future of Kenya’s healthcare overhaul – and public confidence in it -now hangs in the balance.
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