The Chairperson of the Presidential Council of Economic Advisors, David Ndii, has addressed allegations concerning a private technology firm’s involvement in a contentious 2% deduction on payments made by the Social Health Authority (SHA) to hospitals.
Reports had suggested that the company received approximately Ksh1.2 billion from this levy by July 1, 2026. However, Ndii clarified that this amount does not represent direct payments to the firm but rather revenue collected on behalf of the Digital Health Authority (DHA).
"The two per cent fee is what Fins Privy is contracted to collect for DHA, not what a private company is paid," Ndii explained. He described the company as a fintech payment gateway service provider engaged to support the country’s digital health infrastructure.
Background of the Dispute
- The 2% deduction is imposed on hospital reimbursements processed through the Health Information Management System (HIMS), used for claims submission, treatment approvals, and payments under SHA.
- Busia Senator Okiya Omtatah and others filed a petition challenging the legality of this deduction, arguing it lacks parliamentary approval and public consultation.
- The petition also raised concerns about the firm’s handling of patient data and the potential breach of privacy laws under the Data Protection Act.
- The petitioners have requested the High Court to suspend the deduction pending the case’s outcome.
Despite Ndii’s explanation, the Ministry of Health, led by Cabinet Secretary Aden Duale, has yet to issue an official response to the claims.
The High Court is expected to rule on the legality of the deduction and whether its implementation should be paused during the legal proceedings.
