Three petitioners led by Busia Senator Okiya Omtatah Okoiti, Eliud Karanja Matindi, and Dr. Magare-Gikenyi Benjamin have filed a petition in the High Court seeking urgent intervention to halt the ongoing implementation of the Social Health Insurance Fund (SHIF).
The petition, lodged on September 30, 2024, raises serious concerns about alleged fraudulent activities linked to a major government contract awarded to the Safaricom Consortium for an Integrated Healthcare Information Technology System aimed at supporting Universal Health Care (UHC).
The petitioners characterize the contract, worth Ksh 104 billion, as part of a “vicious fraud scheme” designed to siphon public funds through collusion between government officials and the Safaricom Consortium, which comprises Safaricom PLC, Konvergenz Network Solutions Limited, and Apeiro Limited.
They allege that the contract, awarded under Tender No. MOH/SDMS/ADM/SPPP/005/2023-2024, disregards critical procurement laws and transparency measures, potentially leading to one of the largest financial scandals in Kenya’s healthcare sector.
The petition highlights several issues including that the Ministry of Health is accused of colluding with the consortium to bypass proper procurement processes, presenting the tender as a cover for corrupt practices.
The petitioners claim to possess secret documents that reveal the extent of the alleged fraud and collusion, suggesting that the consortium’s profits will come at the expense of Kenyan taxpayers.
The petition asserts that the award of the contract violated the Public Procurement and Asset Disposal Act, leading to unlawful single-sourcing without competitive bidding.
The petitioners argue that the tender award violates Articles 10, 227, and 232 of the Kenyan Constitution, which call for adherence to transparency and accountability in public service.
They contend that the Safaricom Consortium was wrongly awarded functions that should have been handled by the Digital Health Agency, undermining the statutory framework.
The petition points out that the implementation of SHIF is based on annulled legislation, rendering the process unconstitutional.
The petitioners argue that Kenyans will not gain ownership or long-term benefits from the system, which remains the property of the vendors.
The petitioners are requesting several critical legal remedies including an order to suspend and ultimately quash the contract with the Safaricom Consortium.
Omtatah also seek a declaration that the tender and contract are unconstitutional and invalid.
The senator have urged the court to issue a permanent injunction preventing the government from utilizing public funds for the contract
“Recovery of any public funds lost due to the alleged fraudulent activities. A directive for the Digital Health Agency to take charge of developing the UHC system,” They seek.
This case carries profound implications for public procurement practices in Kenya, especially regarding the transparency and integrity of government contracts.
It raises pressing questions about the management of healthcare resources, particularly in the context of Kenya’s ongoing efforts to enhance access to quality health services for its citizens.
The petitioners argue that this is not merely a legal battle but a crucial stand for the right of all Kenyans to fair and transparent governance, particularly in critical areas like healthcare.
