Health Cabinet Secretary Aden Duale has defended the 2% service fee charged on claims processed via Kenya's national digital health platform, Taifa Care, amid scrutiny and legal challenges.

In a statement released on August 4, 2026, Duale clarified that the fee is legally grounded under the Social Health Insurance Act, 2023, and is vital to support the digitisation of the country’s health financing system.

Legal and Regulatory Backing

Duale cited Regulation 11(2) of the Digital Health (Data Exchange Component) Regulations, 2025, which mandates a service fee for users of the shared digital health system. The fee is set at 2% of the service value, capped at Ksh5,000, as detailed in the Third Schedule.

“This is a capped fee for the use of a system, not an open-ended share of hospital earnings,” he emphasized.

Fee Payment and Accountability

The Health CS explained that the fee is payable to the Digital Health Agency, a government entity established under the Digital Health Act, 2023. He dismissed claims that public funds are diverted to private companies, stating that no private firm receives or manages these funds.

He reaffirmed that the Social Health Authority (SHA) is solely responsible for reviewing and disbursing payments to healthcare providers, with no delegation to private entities.

Regarding transparency, Duale noted that all funds collected by the Digital Health Agency are public monies subject to audits under the Public Finance Management Act and Public Audit Act, with financial reports submitted to the National Assembly after Auditor-General review.

Role of Private Firms and Procurement

The digital health system is implemented through a government contract with the Safaricom Consortium, procured according to the Public Procurement and Asset Disposal Act. Subcontracting is permitted under this framework, but subcontractors do not directly receive public funds.

Duale stressed that the regulations establishing the fee underwent a thorough regulatory impact assessment, public consultation, parliamentary approval, and publication in the Kenya Gazette on April 11, 2025.

Ongoing Legal Proceedings and Stakeholder Engagement

The matter is currently before the High Court, where Duale is named as a respondent. He stated the government will respond through legal channels and that the issue will not be debated in the media.

He also assured healthcare providers that the Social Health Authority and Digital Health Agency have been instructed to engage stakeholders actively and resolve claims promptly, with improvements to the system where necessary.

“Every shilling under Taifa Care belongs to the Kenyan patient,” Duale concluded.