Social Health Authority is outsourced, says Ndii

Economist David Ndii now says the controversial Social Health Authority (AHS) system is not owned by government.

In a statement on Tuesday March 3, Ndii, who is the chairperson of President William Ruto’s Council of Economic Advisors stated that the platform is fully outsourced, and the government has not spent any money upfront on its development.

He explained that the Ksh104 billion cost being debated is a user fee payable over a 10-year contract period, not a direct government expenditure.

Ndii also revealed that after the 10-year contract period, the Digital Health Authority will take over the system’s management.

“There is no payment made in advance. The government is only charged when we use it, just like M-Pesa,” Ndii stated.

“For comparison, we paid Safaricom Ksh77 billion in M-Pesa fees last year. The platform will provide similar capability at Sh10 billion a year—about Ksh50 per hospital visit.”

He added that each hospital visit involves at least five transactions—including patient and provider authentication, data retrieval and uploading, and prescription filling—making it approximately Ksh10 per transaction.

SHA has led to concern among Kenyans citing issues such as a failing system, out-of-pocket payments, and limited coverage since its rollout on October 1, 2024.

Patients often experience long waiting times, overcrowding in hospitals, and limited access to specialized care.

One of the major concerns raised by the public is the continued financial burden of out-of-pocket payments.