Nyeri Referral Hospital appeals to MPs to recover Sh16 million lost in erroneous SHA transfer

Nyeri County Referral Hospital has turned to the National Assembly after losing more than Sh16 million in a mistaken transfer by the Social Health Authority (SHA) to a neighbouring private facility.

While addressing the National Assembly Health Committee during its inspection visit, Medical Superintendent Dr Benson Muchiri said that between February and May this year, the hospital submitted claims worth Sh56,121,150. However, instead of crediting its account, SHA sent the entire amount to Mt Kenya Hospital.

“Out of this amount, Mt Kenya Hospital spent Sh16,756,200 before the error was detected. The remaining SH39,364,950 was later redirected to our account, but despite our efforts, recovery of the balance has been unsuccessful,” Dr Muchiri told the Committee.

He added that delayed reimbursements by SHA were further worsening operations at the referral facility. By the end of August, the hospital’s unpaid bills had risen to Sh142,537,052.

“Out of total claims worth Sh339,649,692, only Sh197,112,640 has been paid, translating to just 58 per cent,” he explained. He also revealed that the defunct National Hospital Insurance Fund (NHIF) still owed them Sh156,615,121.

Nyeri Town legislator Duncan Mathenge, who led the oversight mission, described the mix-up as serious and said Parliament would act quickly to ensure the money is recovered.

“That is a grave mistake by SHA. Unfortunately, it is not an isolated case, and the Committee will ensure corrective action is taken,” Mathenge assured.

The legislators also visited PCEA Tumutumu Mission Hospital, where its Chief Executive Officer, Kinya Mukiindia, said the institution was struggling to remain afloat due to huge unpaid claims.

“SHA has delayed payments amounting to Sh128 million, while NHIF owes us Sh89 million,” Mukiindia said, noting that the total debt of Sh218 million had left the hospital on the verge of closure.

The Committee members pledged to escalate the matter, stressing that both erroneous and delayed payments were threatening hospitals and undermining the objectives of the new insurance scheme.

"The Committee's tour of public and private medical facilities in Nyandarua and Nyeri counties to assess SHA operations, challenges and areas of improvement has been successful as we have gathered a lot of data that will help propose ways of improving the new medical insurance scheme for the benefit of Kenyans," Mathenge stated.

Among those accompanying him on the fact-finding exercise were Samburu County MP Pauline Lenguris and Mwea MP Mary Maingi.

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