Health Cabinet Secretary Aden Duale has categorically dismissed allegations that Ksh1.2 billion from the Social Health Authority (SHA) was paid to a private proxy firm. He clarified that all charges related to Kenya's national digital health system are lawful, publicly regulated, and paid exclusively to a government agency.

In a statement released on Tuesday, Duale addressed a media report that suggested public funds were being diverted to a private company outside legal frameworks. He emphasized that this impression was false and reaffirmed the government's commitment to the digitisation agenda under the Taifa Care initiative, a key pillar in achieving Universal Health Coverage (UHC).

Legal Framework Governing Digital Health Fees

The CS explained that the Social Health Insurance Act mandates critical processes such as member registration, pre-authorisation, claims management, and settlement to be conducted through a secure interoperable digital platform. The service fee in question is stipulated under the Digital Health (Data Exchange Component) Regulations, 2025, which prescribe a 2% charge on services processed via the Health Information Management Service (HIMS), capped at Ksh5,000 per transaction.

He stressed that the levy is payable to the Digital Health Agency (DHA), a state corporation established under the Digital Health Act, and not to any private entity.

Accountability and Oversight

Duale highlighted that every shilling collected by the Digital Health Agency is public money, subject to audits under the Public Finance Management Act and the Public Audit Act before being presented to Parliament. He refuted claims that private firms receive or control funds meant for healthcare providers, affirming that the SHA alone processes and disburses payments to contracted providers.

Private Sector Involvement and Procurement

The Health CS acknowledged the government's contract with the Safaricom Consortium to implement the digital health system, procured in line with the Public Procurement and Asset Disposal Act. He noted that subcontracting arrangements are lawful commercial agreements that do not grant subcontractors access to public funds or roles in payments to healthcare facilities.

Regulatory Transparency and Legal Proceedings

Duale also dismissed assertions that the regulations introducing the service fee were hidden from the public. He confirmed the regulations underwent a regulatory impact assessment, public participation, parliamentary approval, and were gazetted on April 11, 2025.

The dispute concerning the digital health system has been filed in the High Court, where Duale is a named respondent. He stated the government will submit a full response through legal channels and declined to engage further in media debates.

Ongoing Stakeholder Engagement

While reaffirming the legality of the digital health fees, Duale acknowledged concerns from healthcare providers regarding claims processing. He directed the SHA and the Digital Health Agency to continue stakeholder consultations to resolve outstanding issues.