Nairobi, Kenya Mar 5 – Auditor General Nancy Gathungu has laid bare irregularities in the procurement of the technology system running the Social Health Authority (SHA), urging Parliament to take decisive action against those responsible.
Appearing before the Senate Public Accounts Committee, Gathungu made it clear that she had fulfilled her constitutional duty by exposing flaws in the tender process.
“I have concluded that there was no effectiveness or lawfulness in the use of public resources on these matters. There is the aspect of governance and risk management, and I have been very clear that there were issues,” she said.
Her remarks came as senators criticised her reports for lacking specific recommendations for prosecution. However, Gathungu pushed back, insisting that it was now Parliament’s role to ensure accountability.
Committee Chair Moses Kajwang (Homa Bay) acknowledged her findings but decried the lack of consequences for those implicated.
“Kenyans are happy that finally, someone has uncovered this thing called special purpose vehicles, which are, in reality, public looting vehicles—put together in a rush to justify direct and emergency procurement under the guise of social emergencies, while in truth, it’s a tool for looting public resources,” he said.
Nairobi Senator Edwin Sifuna called for Parliament to terminate the contract to prevent further loss of public funds.
“Can we, with finality, take some action? Can we take drastic action and terminate that contract? Because we cannot continue to allow people to enjoy the proceeds of crime. Let’s just declare SHA a criminal enterprise and shut it down today,” he said.
Kajwang stressed that while the Auditor General had exposed the violations, lawmakers must now take responsibility for ensuring action through administrative measures, investigations, and prosecutions.
“The Auditor General has done the diagnosis. It is now time for Parliament to prescribe the remedy, and that remedy must be the stiffest punishment—even if it means discontinuing the system,” he said.
His sentiments underscored the urgency for lawmakers to move beyond debate and enforce accountability.
Gathungu’s 2023-2024 audit report revealed significant legal violations in the Ksh104 billion procurement of SHA’s technology system.
The report highlighted unbudgeted and non-competitive procurement, an undefined scope of work, and a lack of payment agreements. It also flagged unfavourable contract clauses that cede control of the system to a private entity, barring government health agencies from accessing or modifying it.
Further, the contract mandates that any disputes be settled under the London Court of International Arbitration, effectively locking out Kenya’s legal framework.
The audit also found that the State Department of Medical Services acquired the system outside the approved procurement plan and medium-term budgetary framework. The system was procured through direct sourcing, violating the Public Procurement and Asset Disposal Act, which mandates a fair, transparent, and competitive process.