Health Cabinet Secretary Aden Duale has dismissed reports that public funds collected through the national digital health system are being paid to a private company outside the law.
Duale said the reports created a false impression about the service fee charged on claims processed through the national digital health system.
The CS defended the digitisation of the health financing system, saying it is a legal requirement under the Social Health Insurance Act, 2023, and a key pillar of the government's Universal Health Coverage programme.
"My attention has been drawn to the report concerning the service fee levied on claims processed through the national digital health system. The report creates the impression that public money is being paid to a private company outside the law. That impression is wrong, and I reject it," he said.
He said the law requires all processes, including member identification, pre-authorisation, claims management and settlement of claims, to be conducted through a secure and interoperable digital platform.
Duale clarified that the service fee is paid to the Digital Health Agency, a state agency established under the Digital Health Act, 2023, and not to any private company.
He stated that the Social Health Authority (SHA) remains the only institution mandated by law to review, process and pay claims to contracted healthcare providers.
The CS also dismissed claims that public funds are being handled through undisclosed accounts, saying all revenue received by the Digital Health Agency is public money subject to oversight.
"No private entity receives, holds, controls or disburses funds due to healthcare providers. Every shilling received by the Digital Health Agency is public money and is accounted for as public money. The agency's accounts are audited under the Public Finance Management Act and the Public Audit Act before being tabled in the National Assembly," he said.
Duale said the digital health system is being delivered under a government contract awarded in accordance with the Public Procurement and Asset Disposal Act.
"The engagement of a sub-contractor by a contracted party is a lawful commercial arrangement. It does not make that sub-contractor a recipient of public funds outside the law, and it gives it no role whatsoever in paying hospitals," he said.
The health CS noted that the regulations governing the system underwent a regulatory impact assessment, public participation and parliamentary approval before being gazetted in April 2025.
He confirmed that the matter is currently before the High Court, where he has been named as a respondent, and said the government would respond through the legal process.
"The Government will file its full response on the record, and I will abide by the determination of the court. I will not litigate this matter in the press," he said.
Duale also assured healthcare providers that the government remains committed to addressing concerns over claims processing.
"To our healthcare providers: my door is not closed. I have directed the Social Health Authority and the Digital Health Agency to continue engaging you directly through the stakeholder mechanism, and to resolve claims complaints without delay. Where the system can be improved, we will improve it."
"Let me be clear. Every shilling under Taifa Care belongs to the Kenyan patient," Duale said.
