Health Cabinet Secretary Adan Duale has challenged reports by the Daily Nation suggesting that over Ksh1.2 billion from the national digital health system was diverted into an undisclosed private account.
In a statement issued on August 4, 2026, CS Duale condemned the narrative that public funds were being improperly transferred to private companies. He emphasized that the service fee charged on claims processed through the digital health platform is established by law and is integral to Kenya's Universal Health Coverage (UHC) framework.
Legal Framework and Fee Structure
CS Duale highlighted that the Social Health Insurance Act, 2023, mandates all claims to be processed via a secure digital system. Furthermore, the Digital Health Regulations of 2025 set the service fee at 2% of the transaction value, capped at Ksh5,000 per claim.
He clarified that the fee is collected by the Digital Health Agency (DHA), a government entity created under the Digital Health Act, 2023, and not by any private firm as alleged.
Transparency and Accountability
The Cabinet Secretary was categorical that no private organization receives, controls, or disburses funds intended for healthcare providers. These responsibilities rest solely with the Social Health Authority (SHA), as stipulated under sections 5(e), 35, and 36 of the Social Health Insurance Act.
All funds collected by the DHA are public monies subject to audits under the Public Finance Management Act and are reported to the National Assembly.
Legal Proceedings
CS Duale confirmed that the matter is currently before the High Court, where he is named as a respondent. He stated the government will submit its official response through the judicial process and refrained from further public debate on the issue.
