Sh142 million spent on lawyers in Social Health insurance case

The government has spent Sh142 million on legal fees to defend the Social Health Insurance Act (SHIA), 2023, in court, Medical Services Principal Secretary Harry Kimtai has revealed.

The hefty legal expenditure came after activist Joseph Aura filed a petition challenging the implementation of the law.

Speaking before the Health Committee in Parliament last week, Kimtai explained that the Ministry of Health had to engage high-profile lawyers to fight the case.

He told MPs that the legal expenses are now part of the supplementary budget and require parliamentary approval.

“We equally need Sh142.2 million to pay external counsels,” Kimtai told the committee chaired by Endebess MP Robert Pukose.

The Social Health Authority (SHA), which was meant to streamline healthcare funding and ensure universal access to medical services, has faced legal hurdles since its introduction.

The petition filed by Aura also challenged the Primary Health Act and the Digital Health Act, all enacted in 2023.

Aura, through lawyer Harrison Kinyanjui, argued that the Social Health Insurance Act was unconstitutional. He claimed that the Executive bypassed Parliament when enacting the new law and that there was insufficient public participation before its implementation.

On July 12, the High Court directed Parliament to carry out more inclusive public participation before passing the law.

The court also suspended the acts for 45 days and ordered amendments to certain provisions.

Despite this, Kimtai told MPs that the government has already appealed the decision that declared parts of the laws unconstitutional.

The legal fees revelation comes amid concerns raised by the Auditor General about the system managing social health insurance.

According to the Auditor General, the system is controlled by private individuals despite the government spending Sh104 billion to acquire it.

The report has raised questions about transparency in the management of health funds.

Meanwhile, Kimtai also requested an additional Sh350 million for foreign travel for himself and Health Cabinet Secretary Deborah Barasa over the next three months.

He told MPs that Kenya’s new role as chair of the East African Community requires their participation in various meetings, yet no budget had been set aside for this.

“The state department currently has zero allocation on foreign items to facilitate such attendance,” Kimtai said, adding that the funds would also cater for fuel, conferences, and domestic travel.

Additionally, Kimtai urged Parliament to approve Sh6 billion to support primary healthcare services and the Emergency, Chronic, and Critical Illness Fund. He said these funds are essential to ensure healthcare services continue to run smoothly.

The committee is now reviewing the requests as part of the ongoing supplementary budget discussions.