Senators demand answers over stalled Sh7 billion compensation to NYS families

Bungoma Senator David Wafula, who raised the concern, said the situation has dragged on for years even after the Treasury sent money to help ease the backlog.
Families of National Youth Service (NYS) personnel who were injured or died in the line of duty are still waiting for compensation running into billions, with senators warning that the government’s inaction has deepened their suffering.
The Senate was told that despite being covered under an insurance scheme, thousands of NYS officers and their dependents have not been paid claims amounting to Sh7 billion.
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Senators now want the Health Committee to take up the matter and demand accountability from the Social Health Authority (SHA).
Bungoma Senator David Wafula, who raised the concern, said the situation has dragged on for years even after the Treasury sent money to help ease the backlog.
“I seek a statement from the Health Committee on a matter of national concern regarding the delay by the defunct National Hospital Insurance Fund scheme and its successor, the Social Health Authority, to settle claims under the NYS insurance scheme,” Wafula said.
The scheme, which was originally run by NHIF, was placed under SHA after health sector changes.
But Wafula noted that even with this transition, claims have not been honoured, leaving officers and their families without compensation.
He pointed out that the unpaid amounts have piled up over the past four years under different covers, including work injury benefits, accident claims, and enhanced group life insurance.
Out of this, 1,004 death claims are worth Sh4.21 billion, 1,026 funeral cases total Sh207.3 million, while 1,267 injury claims stand at Sh2.64 billion.
Wafula further revealed that Treasury had already released Sh1.48 billion to SHA to partly settle the dues, but no payments have been made so far.
“Several personnel of NYS and their families have borne untold suffering due to the failure by the defunct NHIF scheme and its successor, SHA, to pay their claims amounting to Sh7.07 billion,” he said.
The Senate Health Committee is expected to establish why the funds have not been released, outline the measures SHA is taking, and provide clear timelines for settling all the outstanding claims.
It will also probe whether accrued interest will be included once the payments are made.
“The committee should explain the inordinate delay by the Social Health Authority to release the Sh1.48 billion disbursed by the National Treasury for part settlement of the claims, including the timelines for the same,” Wafula said in his petition.
The scheme was launched under the administration of former Treasury Cabinet Secretary Ukur Yatani, who described it as a milestone in protecting civil servants and NYS officers. At the time,
Yatani said the insurance package, which included work injury and accident cover, would improve staff welfare, raise productivity in public service, and boost the local insurance industry.
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