Health Cabinet Secretary Aden Duale has firmly denied allegations suggesting that public funds collected via the national digital health system, Taifa Care, are being diverted to private companies unlawfully.

Addressing concerns about the service fee charged on claims processed through the system, Duale emphasized that these fees are paid to the Digital Health Agency, a government entity established under the Digital Health Act, 2023, not to any private firm.

Legal Framework and Oversight

The CS highlighted that the digitisation of health financing is mandated by the Social Health Insurance Act, 2023 and forms a critical part of Kenya’s Universal Health Coverage initiative.

  • All activities including member identification, claims pre-authorisation, management, and payments are conducted on a secure, interoperable digital platform.
  • The Social Health Authority (SHA) remains the sole institution legally empowered to review, process, and disburse payments to healthcare providers.
  • Funds managed by the Digital Health Agency are public monies, subject to regular audits under the Public Finance Management Act and Public Audit Act before parliamentary review.

Response to Procurement and Legal Proceedings

Duale explained that the digital health system was procured in compliance with the Public Procurement and Asset Disposal Act. He clarified that subcontracting arrangements do not transfer public fund control to private entities.

The CS confirmed ongoing legal proceedings regarding the matter, stating the government will respond through court channels and refrains from debating the issue publicly.

Commitment to Healthcare Providers

To healthcare providers, Duale assured continuous engagement and swift resolution of claims-related issues through established stakeholder mechanisms. He reiterated that every shilling under Taifa Care rightfully belongs to Kenyan patients.