MPs grill SHA over Sh91m legal costs, disputed Karen land and stalled NHIF projects

Social Health Authority officials led by CEO Dr Mercy Mwangangi appearing before the National Assembly Public Investments Committee on Social Services, Administration and Agriculture on October 22, 2025. (National Assembly)

By Maureen Kinyanjui
Thursday, October 23, 2025

The MPs were alarmed by the unexplained variance of Sh77.6 million between the amount spent on legal fees and the value of cases pursued.

The Social Health Authority (SHA) was put on the spot by MPs over questionable spending inherited from the defunct National Health Insurance Fund (NHIF), including Sh91 million spent on legal fees to recover just Sh13.9 million, and a string of unresolved projects worth billions.

The revelations are captured in the Auditor General’s report for the 2023/2024 financial year, which flagged wasteful expenditures, procurement irregularities and weak asset management.

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Appearing before the National Assembly Public Investment Committee on Social Services, Administration and Agriculture (PIC-SSAA), chaired by Navakholo MP Emmanuel Wangwe, SHA Chief Executive Officer Dr Mercy Mwangangi faced tough questioning over how the Authority was handling assets and liabilities transferred from NHIF.

The MPs were alarmed by the unexplained variance of Sh77.6 million between the amount spent on legal fees and the value of cases pursued.

“Included in the amount is legal expenses of Sh91.6 million paid for cases which had an estimated amount of Sh13.9 million. This resulted in unexplained or unreconciled overpayment of Sh77.6 million, which was also contrary to schedule 6(1)(b) of the advocates’ remuneration,” the audit report stated.

Mwangangi was also questioned about the 10-hectare (23-acre) parcel of land in Nairobi’s Karen area, which remains under dispute despite NHIF holding the original title documents.

The land, valued at Sh298,589,665, has been the subject of a court case since 2011 involving the Directorate of Criminal Investigations (DCI) and the Office of the Director of Public Prosecutions (ODPP).

“The ownership of this parcel of land is in dispute and the matter is in court,” Auditor General Nancy Gathungu stated. “In the circumstances, the ownership of land valued at Sh298,589,665 could not be confirmed.”

Mwangangi informed the committee that SHA has been cooperating with investigators and has set aside Sh50 million in its current budget to fence and secure the disputed property while awaiting the court’s decision.

“DCI requested NHIF to surrender the original titles for purposes of investigation. The current status of the matter indicates that the criminal matter is still ongoing,” she said.

MPs were equally concerned about the stalled multi-storey car park project that has ballooned from an initial cost of Sh909 million to about Sh3 billion.

The Auditor General said investigations into procurement irregularities have been slow despite repeated parliamentary recommendations for action.

“As at the time of this audit in March 2023, no progress report had been received from the Commission (Ethics and Anti-Corruption Commission),” Gathungu reported.

Mwangangi told the committee that the matter is already under investigation by the EACC. “The matter was therefore referred to EACC as directed by the Public Investment Committee, and EACC commenced investigations by requesting original documentation,” she said.

“In September 2022, the Fund’s CEO was invited by EACC to record a statement on the status of the documents. EACC guided that they would give way forward.”