The Social Health Authority (SHA) will spend Sh50 million to fence a 23-acre parcel of land in Nairobi’s Karen area as it awaits the court’s decision over a long-standing ownership dispute.
The land, measuring 10 hectares, was inherited from the defunct National Health Insurance Fund (NHIF), which SHA replaced following the rollout of health sector reforms.
Appearing before the National Assembly Public Investment Committee on Social Services, Administration and Agriculture (PIC-SSAA) chaired by Navakholo MP Emmanuel Wangwe, SHA Chief Executive Officer Mercy Mwangangi on Wednesday said the Authority had set aside the funds in its current budget to secure the property.
“The ownership of this parcel of land is in dispute and the matter is in Court,” Auditor General Nancy Gathungu noted in her latest report, which valued the property at Sh298,589,665. “In the circumstances, the ownership of land valued at Sh298,589,665 could not be confirmed.”
According to the Auditor General, the land has been tied up in a legal battle since 2011, with investigations handled by both the Directorate of Criminal Investigations (DCI) and the Office of the Director of Public Prosecutions (ODPP). Despite the NHIF holding the original title documents, the case remains unresolved.
Mwangangi told MPs that the Authority had taken steps to recover the land, including cooperating with investigators. “DCI requested NHIF to surrender the original titles for purposes of investigation. The current status of the matter indicates that the criminal matter is still ongoing,” she said.
During the Wednesday session at Bunge Towers, committee members were taken aback by revelations that the Authority spent Sh91 million in legal fees to recover only Sh13.9 million. The Auditor General’s report for the 2023/2024 financial year flagged the variance of Sh77.6 million, which MPs said could not be justified.
“Included in the amount is legal expenses of Sh91.6 million paid for cases which had an estimated amount of Sh13.9 million. This resulted in unexplained or unreconciled overpayment of Sh77.6 million, which was also contrary to schedule 6(1)(b) of the advocates' remuneration,” the report stated.
The same audit report raised concerns about the stalled Sh3 billion multi-storey car park project that was initially valued at Sh909 million. The Committee had earlier directed the Ethics and Anti-Corruption Commission (EACC) to speed up investigations into possible procurement irregularities and hold those responsible to account.
However, Gathungu noted that the investigations had not made progress despite repeated parliamentary recommendations. “As at the time of this audit in March 2023, no progress report had been received from the Commission (Ethics and Anti-Corruption Commission),” she reported.
Mwangangi told the MPs that the matter was already with the EACC and that the Authority had cooperated fully with the anti-graft body. “The matter was therefore referred to EACC as directed by the Public Investment Committee, and EACC commenced investigations by requesting original documentation,” she said.
“In September 2022, the Fund’s CEO was invited by EACC to record a statement on the status of the documents. EACC guided that they would give way forward.”
The Public Investment Committee on Social Services, Administration and Agriculture is tasked with examining reports from the Auditor General and ensuring accountability in state corporations handling social investments.
The committee has been reviewing multiple cases linked to the defunct NHIF and the transition to the Social Health Authority, with emphasis on safeguarding public assets and ensuring value for money in public spending.
