SHA on the Spot for Sh91.6 Million Overpayment on Legal Expenses

The Social Health Authority (SHA) has come under scrutiny from Members of Parliament over questionable expenditures amounting to millions of shillings, including irregular legal payments and unsupported board expenses.

The Public Investments Committee on Social Services, Administration and Agriculture (PIC-SSAA), chaired by Navakholo MP Emmanuel Wangwe, on Wednesday grilled SHA officials led by CEO Dr. Mercy Mwangangi over audit queries raised by the Auditor-General for the financial years 2021/2022 to 2023/2024.

According to the Auditor-General’s report, the SHA Board spent Sh5.83 million on meetings that were not supported by signed attendance registers or board minutes. Committee members questioned the accountability of such spending, arguing that the funds could have been used to provide healthcare services to needy Kenyans.

“If you say that the board was paid five million, this means many deserving Kenyans were denied an opportunity to be treated,” said Ndhiwa MP Martin Peters Owino.

The audit also revealed that SHA incurred legal expenses totaling Sh247.8 million. Out of this, Sh91.6 million was paid for cases valued at only Sh13.9 million — an overpayment of Sh77.6 million, contrary to Schedule 6(1)(b) of the Advocates’ Remuneration Order.

Committee Chair Emmanuel Wangwe questioned the logic behind such payments, asking, “Where is the value for money when you pay Sh77 million to collect Sh13 million?”

The committee also revisited the controversial multi-storey car park project, whose cost ballooned from Sh909 million to Sh3.97 billion — a 337% increase from the original contract value. Despite earlier recommendations by the committee for the Ethics and Anti-Corruption Commission (EACC) to investigate the matter, no progress report has been submitted.

“There were more than two payments on the car park which shot the budget by 37%. Make sure you tabulate all the transactions as documented in the books of account,” Wangwe directed.

Committee Vice-Chairperson, Saboti MP Caleb Amisi, expressed frustration over repeated excuses from public institutions. “We are talking about billions of shillings of taxpayers’ money. The COVID-19 pandemic line is a tired excuse by government institutions that have embezzled public funds,” he said.

Responding to the concerns, Dr. Mwangangi assured MPs that SHA is undertaking reforms and is committed to transparency. “We are committed to accountability and transparency, and we have made significant reforms to address past weaknesses,” she said, adding that the Authority is working with documents inherited from the defunct NHIF.

The committee directed SHA to provide all missing documentation and furnish evidence of its cooperation with the EACC regarding the stalled car park investigation.