MoH plans stiffer penalties for fraud at new insurance fund

Ministry says all funds will go towards payment of healthcare services for all Kenyans

In Summary

•Early this month, (EACC said anyone involved in the alleged fraudulent activities that resulted in a loss of Sh171 million at NHIF will be dealt with accordingly

•This, the agency, said includes prosecution or forfeiture of any monies found to have been acquired illegally from public coffers

NHIF headquarters in Nairobi.
NHIF headquarters in Nairobi.
Image: FILE

The Ministry of Health through the Social Health Authority plans to introduce stiff penalties for anyone involved in embezzling the Social Health Insurance Fund.

The authority’s board chairperson Timothy Olweny has acknowledged that fraud has been a major issue in the defunct National Health Insurance Fund.

Speaking on K24 on Tuesday, Olweny said despite the several cases of fraud reported within the fund in the past, there were no significant penalties to ensure those culpable are held accountable.

“Fraud is something that has always been a challenge in NHIF. It is something that we can only try and mitigate against by learning from the lessons that we have from the past,” Olweny said.

“In the past, there were no real consequences to the fraud and therefore there have to be significant penalties that are going to be enforced in terms of ensuring that any funds that are lost are recovered and those perpetrators are brought to book."

He noted that the new authority will be keen on ensuring that what is collected goes towards payment of healthcare services for all Kenyans.

Olweny further noted that the fund will leverage technology to ensure that all processes and transactions are tracked to avoid future fraud scandals.

“We are going to leverage technology to try and ensure that those things that went on in NHIF are not repeated. We want to ensure as much as possible whenever funds are collected they are directed towards paying for healthcare as opposed to anything else,” Olweny assured.

Early this month, the Ethics and Anti-corruption Commission (EACC) said anyone involved in the alleged fraudulent activities that resulted in a loss of Sh171 million at NHIF will be dealt with accordingly.

This, the agency, said includes prosecution or forfeiture of any monies found to have been acquired illegally from public coffers.

“The commission has been investigating this matter. Culpable public officials, private persons and entities will be dealt with in accordance with the law,” it said on X.

The ministry confirmed on January 5 that the national insurer lost Sh171 million due to sham activities following an audit that was conducted in 27 health facilities between January to December 2023.

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