RGK Radio – Kenya’s Bold Talk Radio Station for News, Interviews & Real Conversation

Families of fallen public servants still await Sh8.14 billion insurance payouts

Families of fallen public servants still await Sh8.14 billion insurance payouts
The Social Health Authority(SHA) building, October 1, 2024.
In Summary

Documents presented to the Senate reveal that thousands of families are enduring hardship as billions of shillings in benefits remain unpaid under the Group Life, Last Expense, Work Injury Benefit Act (Wiba), and Group Personal Accident (GPA) schemes.

The Senate has launched investigations into the Social Health Authority (SHA) over its failure to release Sh8.14 billion in insurance benefits owed to families of public servants who died in the line of duty over the past three financial years.

Bungoma Senator Wakoli Wafula has petitioned the Senate Health Committee to probe why SHA has not settled State-funded benefit claims under civil servants, National Youth Service, and teachers’ enhanced insurance schemes for the 2020/21, 2022/23, and 2023/24 financial years.

Documents presented to the Senate reveal that thousands of families are enduring hardship as billions of shillings in benefits remain unpaid under the Group Life, Last Expense, Work Injury Benefit Act (Wiba), and Group Personal Accident (GPA) schemes.

Senator Wafula said the prolonged non-payment pointed to a deeper crisis in the government’s human resource management.

“Several personnel and their families have borne untold suffering due to the failure by the defunct National Health Insurance Fund and its successor, SHA, to pay their claims, which have accrued over the years,” he told the committee.

One documented case involves the family of a senior government dentist who died while treating patients during the Covid-19 pandemic and is still owed Sh29.9 million, five years later.

A member of the Senate Health Committee, who requested anonymity, said the delays reflected poorly on the State’s commitment to workers’ welfare.

“If the government cannot honour its basic obligations, what does that say about its commitment to the welfare of the people? Let’s call it for what it is. We can no longer sugarcoat things,” the senator remarked.

In a July 1 letter to SHA Chief Executive Officer Dr Mercy Mwangangi, National Treasury Principal Secretary Dr Chris Kiptoo admitted that “challenges” at the Treasury had caused delays in remitting the outstanding premiums, which have disrupted the timely processing of claims.

He confirmed that Sh8.14 billion in unpaid premiums for the three financial years remains pending, but said Sh1.6 billion had been released “as a sign of goodwill and commitment to resolving the issue.”

PS Kiptoo added that the Treasury was “actively pursuing Exchequer funding to clear Sh3.93 billion in legacy claims” lodged before the start of a new contract on April 15, 2021. However, despite the partial release of funds, SHA has yet to pay out the money.

The unpaid benefits have affected more than 7,200 families, including relatives of over 4,000 teachers and 3,200 civil servants. The Senate Health Committee, chaired by Uasin Gishu Senator Jackson Mandago, will lead the probe.

Senator Wafula has asked the committee to establish the reasons for SHA’s delay in releasing the Sh1.6 billion from the Treasury and to confirm whether accrued interest will be included in the settlements, along with the exact amounts and timelines for full payment.

PS Kiptoo assured that the claims will be expedited.

Join the Conversation

Enjoyed this story? Share it with a friend:

Stay Bold. Stay Informed.
Be the first to know about Kenya's breaking stories and exclusive updates. Tap 'Yes, Thanks' and never miss a moment of bold insights from Radio Generation Kenya.