By Ngari Gichuki

Nairobi, Kenya: The Government will not pay consultants demanding Sh7.2 billion for National Hospital Insurance Fund (NHIF) project that has never taken off after ten years.

Health Cabinet Secretary James Macharia said the ministry would not pay “claims for the purported consultancy services” on the proposed NHIF Karen hospital project.

“The Ministry of Health’s position on the said proposed NHIF Karen project is that we shouldn’t pay, can’t pay and, therefore, won’t pay the claims, which alarmingly now stand at Sh7.2 billion,” Macharia said in a terse statement.

Macharia added the decision had been taken in order “to protect the hard-earned public funds, notwithstanding any consequences that may arise thereafter.”

Stalled project

The secretary said the drastic action followed “a process of due diligence.” In July, he directed NHIF management and all parastatals under his docket to submit detailed information on all projects with a value exceeding Sh10 million.

The controversial project is a subject of a parliamentary probe. Top NHIF officials are to appear before the MPs’ team to shed light on the project. This comes after a parliamentary committee summoned top Ministry of Health officials and NHIF chiefs in connection with the proposed Sh22 billion referral hospital and resource centre in Karen that has stalled for ten years despite full funding by the Chinese government and approval by the Cabinet.

In the press statement, the Cabinet Secretary states that on July 31 through his office, he issued a directive to the management of NHIF not to make any further payments to purported service providers, including consultants on the proposed project.

He also directed NHIF management and all parastatals falling under the ministry to submit detailed information on all projects that are either ongoing, contracted, committed or planned, with a value exceeding Sh10 million together with back-up information on how they were committed or funded.

The collapse of the NHIF referral hospital, being the only project under Vision 2030 in the health sector and expected to cost around Sh22 billion, possess a risk to the Government of losing Sh7.2 billion in consultancy fee.

The Cabinet Secretary said the Ministry of Health is distancing itself from any wrong doing in the Sh22 billion scandal.

House probe

Macharia, his PS Fred Segor, Director of Medical Services James Kimani and NHIF CEO Simon ole Kirgotty and all senior managers of the health insurer are expected to appear before the Parliamentary Committee on Health in a meeting that started Tuesday in Mombasa.

“The committee of the House is an important player and we have summoned them to furnish us with information on the operations of the ministry with the NHIF being top on the agenda,” committee chairman Rachael Nyamai told The Standard.