Two activists have filed a case in court seeking to stop Treasury from releasing any funds to a consortium of insurance companies awarded Sh8.7 billion tender to provide the National Police service and Kenya prisons services members medical cover.
Chrispine Onyango and Henry Shitanda say the tender is illegal and aims at profiteering a few individuals' firms.
The duo argue that the move is in direct conflict with section 15 (5) of the NHIF Act.
The said section has the mandate to provide health insurance to public servants.
"Even where members of NPS and KPS elected to obtain enhanced medical cover, the same can only be offered under NHIF since only NHIF has the direct mandate to offer medical insurance of any kind to government agencies,"they say.
In December last year, the NPS, KPS and CS Interior jointly advertised a tender on provision of medical insurance coverage for the members of the national police service and the Kenya police service.
Two addendums were issued.
The second addendum stated that persons eligible to bid in the tender were insurance underwriters, a consortium of insurance underwriters or public entities. Come December 16 the tender was awarded to a consortium composed of General insurance Ltd, Britam General Insurance Company Kenya Ltdand Old Mutual General Insurance Ltd at a total of Sh8.7 billion.
But the two say the tender was issued contrary to the public procurement and asset disposal act of 2015 and the national insurance health fund.
"The respondents whose employees are public servants have abdicated a well-known medical cover (NHIF) and gone against the law to advertise and issue the tender to private firms," court documents say.
Shitanda and Odhiambo wants the court to issue a temporary order stopping the Principal administrative secretary of NPS and any other principal accounting officer from making any move that will give further effect to the implementation of the tender.
Also sought is an order stopping the respondents and the public procurement regulatory authority from releasing any funds to the three insurance companies as payment for services in the said tender.
According to the court documents, members of NPS and KPS under the new rules risk losing benefits as the private insurers have moved to reduce the reimbursements from Sh1500 per person per visit to between Sh650 and Sh1300 per person per visit.
The effect of this theyvsay will lock out most junior police officers from adequate health and making it very expensive.
"The respondents do not have the capacity to award the tender to any other provider as the NHIF Act only allows employers other than the national government and county government to seek exemption from paying NHIF cover for its employees,"
Justice Hedwig Ong'undi certified the mattwr as urgent and directes it be heard on January 17.