Nandi Governor Stephen Sang has come under sharp criticism from senators over a suspected loss of Sh9 million linked to irregular fee waivers at the Kapsabet County Referral Hospital.
Governor Sang and his county officials appeared before the Senate County Public Investments and Special Funds Committee, where lawmakers questioned the management of key county institutions. These included the Kapsabet Nandi Water and Sanitation Company, Kapsabet Municipality, and the county referral hospital.
The session was chaired by Senator William Kisang, who focused heavily on an audit report of the referral hospital that received a qualified opinion from the Auditor-General, meaning there were serious concerns about how the hospital is run.
Senators raised alarm over breaches of data protection laws at the hospital. The hospital admitted it does not have a clear policy on how long it keeps patient data or how sensitive information such as medical records and bank details are handled.
Senator Raphael Chimera warned that the county government is risking legal trouble.
“This executive is sitting on a legal time bomb by handling sensitive patient information without following the Data Protection Act,” he said.
Lawmakers were also disturbed by a Sh8.9 million loss blamed on irregular waivers. Senator Kisang cited the Public Finance Management Act, which requires all waivers to be properly recorded and reported to the Auditor-General.
“That law exists to stop public money from being lost in the name of charity,” Kisang said. “Failure to provide records shows a serious breakdown in financial discipline.”
Another issue that puzzled senators was the hospital’s report of zero revenue from staff housing. Records show the hospital owns 16 junior and 18 senior housing units, which are occupied by staff.
Senator Agnes Kavindu questioned how the hospital could report no income from the houses.
“It is impossible to collect no rent when staff are living in these houses,” she said.
Governor Sang defended his administration, blaming the problems on staff shortages and challenges caused by the transition from the National Hospital Insurance Fund (NHIF) to the Social Health Authority (SHA).
“The transition made it hard to track claims, and we are now regularising housing records using a check-off system,” the governor said.
However, senators were not convinced. They pointed to the Auditor-General’s findings, which show that internal controls and risk management systems in Nandi County are weak or missing altogether.
The committee warned that the county must take urgent action to fix the problems and properly account for public funds.
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