Government raises fears of crisis if Sh104b Ruto-Adani health deal is cancelled

 

President William Ruto during the launch of the NYOTA Project Business Start-Up Capital disbursement at Kenyatta Stadium in Machakos town. [PCS]

The government has urged the High Court not to suspend the controversial Sh104.8 billion Social Health Insurance Fund (SHIF) digital system, warning that such a move would trigger a national healthcare crisis and disrupt access to medical services for millions of Kenyans.

Appearing before Justice Bahati Mwamuye on Friday, Senior Counsel Kioko Kilukumi mounted a strong defence of the Safaricom-led consortium contract, arguing that the procurement and implementation of the system were lawful and in the public interest.

Kilukumi told the court that the contract had undergone thorough legal scrutiny and was approved by former Attorney General Justin Muturi after extensive consultations with the Ministry of Health and the National Treasury.

“The Attorney General reviewed the agreement clause by clause before approving it,” Kilukumi said, adding that the legal review followed detailed inter-ministerial engagements.

The government was responding to a petition filed by Busia Senator Okiya Omtatah, who is seeking to have the contract quashed on grounds of alleged fraud, irregular procurement, and violation of public finance laws.

Senator Omtatah argued that the deal was riddled with irregularities and lacked competitive bidding, calling it a multi-billion-shilling “government giveaway” to private firms.

He told the court that the public was being denied transparency and that the process violated procurement regulations, putting taxpayers’ money at risk.

The senator also warned that continuing with the SHIF digital system could lead to mismanagement of funds and undermine trust in the national health insurance programme.

However, Kilukumi dismissed the allegations, telling the court that the Supreme Court had already validated the special procurement procedure used in awarding the SHIF technology contract.

“The procurement method was lawful and has been upheld by the Supreme Court,” he submitted.

He further warned that suspending the SHIF digital platform would have far-reaching consequences on the country’s healthcare system, noting that it is currently the only integrated health information technology system linking patients, healthcare facilities, and service providers nationwide.

“This is the only health system in existence that connects patients to health facilities and caregivers. Suspending it would disconnect millions of Kenyans from essential healthcare services,” Kilukumi told the court.

He argued that any interruption of the system would severely injure the public interest and undermine the government’s efforts to roll out universal health coverage.

The court heard that the SHIF digital platform plays a central role in patient registration, verification, claims processing, and payments under the new health insurance framework.

Justice Mwamuye fixed judgment of the matter for March 12, 2026.