NPSC opposes MPs’ bid to redirect Sh833m from police insurance to settle idle hospital debt

The National Police Service Commission (NPSC) has opposed a parliamentary push to reallocate Sh833 million from the police medical insurance budget to settle an unpaid debt owed to a contractor who built a now-idle police hospital in Nairobi’s Mbagathi area.

The proposal, fronted by the National Assembly Administration and Internal Security Committee, seeks to redirect part of the Sh19.52 billion insurance allocation to clear the balance for the 150-bed level four hospital.

Although the facility was completed two years ago and is fully equipped and staffed, it remains unused as the government has only paid Sh400 million of the total contract sum. Auditor-General Nancy Gathungu flagged the outstanding amount in her audit of the National Police Service accounts for the 2023/24 financial year.

The MPs argue that the hospital, intended to provide specialised healthcare for officers and their families, should not be left to waste while the government continues to spend billions on private insurance.

“We cannot justify spending billions on private insurance while this public hospital gathers dust. You have a hospital but no funds to make it functional,” Committee chairperson Gabriel Tongoyo and Narok West MP, said.

Legal risks

However, NPSC Secretary and Accounting Officer Bernice Lemedeket warned that tampering with the insurance allocation could pose legal risks.

“Using insurance funds to pay the debt could breach contracts and disrupt service delivery,” she told the committee.

Despite her warning, committee members maintained their support for the reallocation. Vice Chairperson Dido Rasso (Saku MP) questioned the logic behind insuring officers under private schemes while a fully staffed government facility remains idle.

“This facility is critical for frontline officers. Why is it gathering cobwebs?” he posed.

Lemedeket disclosed that Sh200 million had already been allocated in the upcoming budget to pay salaries of medical personnel at the hospital, despite it not being operational, further fuelling the committee’s frustrations.

At the same time, Gathungu exposed serious irregularities in the administration of police insurance contracts. Despite the government paying billions of shillings in premiums, insurers have failed to settle hundreds of claims related to injury, disability and death.

According to the audit, 262 Group Personal Accident (GPA) claims remain unpaid, alongside 21 unsettled group life insurance claims worth Sh43.5 million. Another 509 claims under the Work Injury Benefit Act, including two deaths, also remain unresolved, despite clear contract provisions that mandate timely compensation.

The contracts stipulate that in the event of death or total disability, officers should receive up to eight years of gross salary, while temporary disability claims are to be paid for up to 12 months.

Possible vested interests

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MPs also raised concerns about accountability within the police leadership, suggesting possible vested interests were hindering efforts to operationalise the hospital.

“It begs the question whether there are individuals benefiting from the status quo, where billions are spent on questionable insurance schemes instead of investing in a functioning public facility,” Rasso said.

He called for a forensic audit into the insurance contracts and warned that continued inaction would amount to economic sabotage and neglect of frontline officers’ welfare.

In 2023, the government awarded APA Insurance and Joint Venture a Sh8.7 billion police insurance contract covering the period from April 2025 to March 2026. The previous scheme, managed by the National Hospital Insurance Fund (NHIF) and valued at Sh10.9 billion after extensions, also faced criticism over unpaid claims.

Teso North MP Oku Kaunya, a former deputy commandant at the Administration Police Training College, insisted that the hospital debt must be prioritised.

“Let’s stop wasting money on insurance that doesn’t pay. This hospital must be put to use,” he said.