Senate faults SHA over delayed Sh8 billion payment to families of deceased civil servants
Among the affected is the family of a senior government dentist who died treating Covid-19 patients and is still owed Sh29.9 million five years after his death.
Thousands of families of public servants who died while serving the country are yet to receive Sh8.14 billion in insurance benefits, prompting the Senate to call for urgent investigations into the Social Health Authority’s (SHA) failure to process these claims.
Bungoma Senator Wakoli Wafula has urged the Senate Health Committee to look into the long delays in settling insurance benefits under State-funded schemes for civil servants, teachers, and the National Youth Service.
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The claims have been pending for three financial years: 2020/21, 2022/23, and 2023/24.
Parliamentary documents reveal that families continue to endure hardship as billions intended for insurance payouts remain locked up.
These claims cover Group Life, Last Expense, Work Injury Benefit Act (Wiba), and Group Personal Accident (GPA) insurance schemes.
Senator Wafula highlighted the suffering caused by the failure of the defunct National Health Insurance Fund and its successor, SHA, to pay accumulated claims.
“Several personnel and their families have borne untold suffering due to the failure by the defunct National Health Insurance Fund and its successor, SHA, to pay their claims, which have accrued over the years,” he said during a statement to the Senate Health Committee.
Among the affected is the family of a senior government dentist who died treating Covid-19 patients and is still owed Sh29.9 million five years after his death.
A Senate Health Committee member who wished to remain anonymous expressed frustration over the government’s failure to honour these obligations, saying it undermines trust in public institutions.
“If the government cannot honour its basic obligations, what does that say about its commitment to the welfare of the people? Let’s call it for what it is. We can no longer sugarcoat things,” the senator said.
In a letter dated July 1 to SHA CEO Dr Mercy Mwangangi, Treasury Principal Secretary Dr Chris Kiptoo confirmed delays caused by challenges at the National Treasury.
He noted that the outstanding premiums for the three financial years stood at Sh8.14 billion, which had slowed claim processing.
PS Kiptoo said the Treasury had released Sh1.6 billion as a goodwill gesture and was pursuing funds to clear Sh3.93 billion in legacy claims reported before the current contract began on April 15, 2021.
Despite this, SHA has not yet disbursed the partial funds to beneficiaries.
The unpaid claims have affected over 7,200 families, including relatives of more than 4,000 teachers and 3,200 civil servants. The Senate Health Committee, chaired by Uasin Gishu Senator Jackson Mandago, will conduct the probe.
Senator Wafula called on the committee to determine why SHA has delayed releasing the Sh1.6 billion remitted by the Treasury and whether accrued interest will be paid on the outstanding claims. He also wants details on timelines and the total amounts expected in full settlements.
Dr Kiptoo assured that efforts are underway to speed up payment of the claims.
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