Senate Demands Answers on Social Health Authority’s Failure to Disburse Sh8.14 Billion to Families of Deceased Civil Servants
Quote from Lawyer on August 13, 2025, 9:00 amThe Senate has launched a probe into the Social Health Authority (SHA) over its failure to release Sh8.14 billion in insurance benefits owed to thousands of families of deceased public servants, including civil servants, teachers, and National Youth Service personnel. The unpaid claims, spanning three financial years (2020/21, 2022/23, and 2023/24), have left families in financial distress, prompting urgent calls for accountability and action.
Bungoma Senator Wakoli Wafula raised the issue, urging the Senate Health Committee to investigate the prolonged delays in processing claims under state-funded insurance schemes. These schemes include Group Life, Last Expense, Work Injury Benefit Act (Wiba), and Group Personal Accident (GPA) policies. Wafula emphasized the severe hardship faced by families, noting that the failure of the now-defunct National Health Insurance Fund (NHIF) and its successor, the SHA, to settle these claims has caused significant suffering.
Among the affected is the family of a senior government dentist who died while treating Covid-19 patients. Five years after his death, the family is still awaiting a Sh29.9 million payout. This case highlights the scale of the issue, with over 7,200 families, including relatives of more than 4,000 teachers and 3,200 civil servants, impacted by the delays.
In a letter dated July 1, 2025, to SHA Chief Executive Officer Dr. Mercy Mwangangi, Treasury Principal Secretary Dr. Chris Kiptoo acknowledged challenges at the National Treasury that have contributed to the delays. Kiptoo revealed that the outstanding premiums for the three financial years total Sh8.14 billion, which has slowed claim processing. As a goodwill gesture, the Treasury released Sh1.6 billion to the SHA, with plans to secure an additional Sh3.93 billion to clear legacy claims reported before the current contract began on April 15, 2021. However, the SHA has yet to disburse these funds to beneficiaries, further fueling frustration.
A member of the Senate Health Committee, speaking anonymously, expressed dismay at the government’s inability to meet its obligations, stating that the failure undermines public trust in state institutions. The senator called for transparency, questioning why the government has not honored its commitments to these families.
The Senate Health Committee, chaired by Uasin Gishu Senator Jackson Mandago, will lead the investigation. Senator Wafula has outlined specific demands for the probe, including an explanation for why the SHA has not released the Sh1.6 billion already provided by the Treasury, whether accrued interest will be paid on the outstanding claims, and a clear timeline for full settlement of the Sh8.14 billion. Wafula also seeks details on the total amounts owed and the steps being taken to ensure prompt payment.
Dr. Kiptoo assured the Senate that the Treasury is working to expedite the release of funds and resolve the backlog of claims. However, the ongoing delays continue to draw criticism, with families and lawmakers alike demanding swift action to alleviate the financial burden on those affected.
The Senate’s investigation is expected to shed light on the systemic issues within the SHA and the Treasury, with hopes of delivering justice to the families of public servants who dedicated their lives to serving the nation.
The Senate has launched a probe into the Social Health Authority (SHA) over its failure to release Sh8.14 billion in insurance benefits owed to thousands of families of deceased public servants, including civil servants, teachers, and National Youth Service personnel. The unpaid claims, spanning three financial years (2020/21, 2022/23, and 2023/24), have left families in financial distress, prompting urgent calls for accountability and action.
Bungoma Senator Wakoli Wafula raised the issue, urging the Senate Health Committee to investigate the prolonged delays in processing claims under state-funded insurance schemes. These schemes include Group Life, Last Expense, Work Injury Benefit Act (Wiba), and Group Personal Accident (GPA) policies. Wafula emphasized the severe hardship faced by families, noting that the failure of the now-defunct National Health Insurance Fund (NHIF) and its successor, the SHA, to settle these claims has caused significant suffering.
Among the affected is the family of a senior government dentist who died while treating Covid-19 patients. Five years after his death, the family is still awaiting a Sh29.9 million payout. This case highlights the scale of the issue, with over 7,200 families, including relatives of more than 4,000 teachers and 3,200 civil servants, impacted by the delays.
In a letter dated July 1, 2025, to SHA Chief Executive Officer Dr. Mercy Mwangangi, Treasury Principal Secretary Dr. Chris Kiptoo acknowledged challenges at the National Treasury that have contributed to the delays. Kiptoo revealed that the outstanding premiums for the three financial years total Sh8.14 billion, which has slowed claim processing. As a goodwill gesture, the Treasury released Sh1.6 billion to the SHA, with plans to secure an additional Sh3.93 billion to clear legacy claims reported before the current contract began on April 15, 2021. However, the SHA has yet to disburse these funds to beneficiaries, further fueling frustration.
A member of the Senate Health Committee, speaking anonymously, expressed dismay at the government’s inability to meet its obligations, stating that the failure undermines public trust in state institutions. The senator called for transparency, questioning why the government has not honored its commitments to these families.
The Senate Health Committee, chaired by Uasin Gishu Senator Jackson Mandago, will lead the investigation. Senator Wafula has outlined specific demands for the probe, including an explanation for why the SHA has not released the Sh1.6 billion already provided by the Treasury, whether accrued interest will be paid on the outstanding claims, and a clear timeline for full settlement of the Sh8.14 billion. Wafula also seeks details on the total amounts owed and the steps being taken to ensure prompt payment.
Dr. Kiptoo assured the Senate that the Treasury is working to expedite the release of funds and resolve the backlog of claims. However, the ongoing delays continue to draw criticism, with families and lawmakers alike demanding swift action to alleviate the financial burden on those affected.
The Senate’s investigation is expected to shed light on the systemic issues within the SHA and the Treasury, with hopes of delivering justice to the families of public servants who dedicated their lives to serving the nation.